It takes the average reader to read Financial Strategy Analysis of Costco, Inc by Lu Zheng
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The retail industry began with traditional stores such as Walmart. These stores' main source of revenue was products that customers purchased, and the more products they sold, the more revenue they earned. Unlike Walmart, however, Costco is a membership wholesale club. It serves its membership the best quality product at the best price. Costco's philosophy is to treat employees well and satisfy its customers. Furthermore, as Amazon continues to grow, Costco, after the acquisition of Innovel, also joined the ranks of E-commerce, becoming a company integrating online and offline sales. In fact, according to Costco's financial statements, the company's margins can break a new high every year. Unexpectedly, a turning point came during the COVID-19 pandemic, when Walmart sales at U.S. locations opened at least once a year decreased by 9.3% (D'Innocenzio, 2020). At the same time, because Costco offered the largest variety of commodities and the most affordable prices, its stores since the pandemic has attracted consumers. Given Costco's considerable commercial presence both offline and online, this thesis will compare Costco's internal and external factors, analyze why Costco is growing so rapidly, and why it is becoming the darling of the capital market.
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