Costco remains an outlier worth studying. The warehouse giant’s disciplined strategy, loyal customer base, and people-first operations consistently outperform industry norms — and continue to capture audience attention. Our two previous Costco analyses ranked among the most engaged features to date, averaging a 92% engagement rate, underscoring the market’s fascination with how this model continues to thrive. Each strategic decision reinforces the same lesson: sustainable retail success increasingly depends on operators who treat real estate as a growth engine, not just overhead.

Leveraging Assets to Drive Expansion

Costco’s growing popularity signals strong potential for geographic expansion. The retailer plans to scale its warehouse portfolio with 35 new locations slated for completion by Summer 2026. Of these, 30 will be brand-new builds, including a 160,000-square-foot warehouse with a gas station located outside Houston and an even larger facility in Midland, Texas, bolstered by city incentives. The remaining five projects are relocations, reflecting rising consumer demand for refreshed assets and expanded spaces.

Its domestic and international growth strategy focuses on expanding into site-specific, adjacent markets to capture untapped membership potential and strengthen its proven model of growth, resulting in more members, more stores, and more recurring revenue. At the 2025 MAPIC conference in Cannes, Costco executives also confirmed the company’s growing interest in European expansion, with plans for new stores in Sweden, Spain, and the United Kingdom, signaling a new phase of global market entry beyond its established North American and Asian footprint. Costco is also maximizing the value of its real estate portfolio as part of a broader expansion strategy. The company’s CEO highlighted its $31.9 billion real estate “footprint” as a core asset, underscoring how owned properties not only strengthen operational control but also enhance long-term financial stability and expansion potential.

This deliberate approach to growth reflects Costco’s broader belief that real estate is not merely a cost center but a competitive advantage — one that amplifies the membership model and reinforces brand loyalty.

Stronger Member Benefits Fuel Growth

The member-first approach is central to Costco’s staying power. The retailer has consistently delivered maximum customer satisfaction throughout its 42-year legacy. Its most loyal (and efficient) customers spend 37 minutes in-store, twice monthly, while those with a wandering eye can spend several hours browsing. Customers pay about $100 per trip and roughly $3,000 annually. Despite an increase in its annual membership fees in 2024 ($65 for standard and business members, $130 for executive members), loyalty remains unwavering, with visitation frequency rising even amid financial concerns.

In August 2025, overall visits to Costco increased by approximately 5.5% year over year, with same-store visits rising by 4%. The retailer recently introduced exclusive early morning shopping hours for executive members, and initial reports indicate that the perk has contributed to a 1% weekly increase in U.S. sales. For the 92% of Americans with cars, Costco has extended its gas station hours, integrated localized price checks into its app, and partnered with Citi to offer up to 5% cash back on fuel purchases through the Costco Anywhere Visa card. Even the legendary $1.50 hot dog combo is now a member-only benefit — a reminder that loyalty, like value, is rewarded. To further protect its value proposition, Costco is tightening access by scanning membership cards or QR codes at store entrances to ensure only paying members enter. A move that helps keep prices lower than those of competitors and reinforces the exclusivity that defines its model.

Mitigating Tariffs and Inflation

As shifts in the global market persist, Costco has continued to refine its supply chain strategy to preserve affordability by increasing its share of U.S.-made goods (such as mattresses and plastic resin products) and sourcing more materials locally, where feasible, to reduce exposure to tariff-related costs. It has also proactively stocked inventory on products most vulnerable to tariff increases. Because Costco maintains a smaller, more curated assortment of SKUs, it can adjust and replace its product mix quickly to provide consumers with cost-effective alternatives. The company also cites its private-label brand, Kirkland Signature, as a key strategy in managing cost pressures. Its operational agility practices reinforce Costco’s reputation for reliability — both for customers seeking value and for landlords and investors who prioritize stable retail anchors in their portfolios.

People Experience

Of course, Costco’s success would not be possible without its people. The company’s reputation as one of the best places to work in retail is no accident; it’s the result of deliberate investment in both compensation and culture. The average hourly wage now exceeds $30, far higher than most competitors, and its turnover rate of 8% is a striking contrast to the retail industry’s average of 60%.

The retailer demonstrates that paying employees a fair wage not only attracts stronger talent but also reduces the hidden costs of turnover and training. Yet its real advantage goes beyond compensation — it’s the culture of respect, growth, and shared purpose that sustains long-term success and strengthens the business, the brand, and its shareholders alike.

Costco’s latest moves merit attention. The company is betting that owned assets, curated membership, and employee stability will matter more than market volatility. For commercial real estate professionals evaluating the next decade of retail, Costco’s expansion offers a clear signal: the winners won’t be the cheapest or the flashiest, but those who turn every square foot into recurring value.

Turn your portfolio into a platform for recurring value — connect with Colliers’ Retail Advisory team today.