Costco Wholesale’s U.S. Operations in 2025: Footprint and Performance

Real Estate Footprint

Costco Wholesale’s U.S. real estate presence in 2025 is extensive yet highly focused. The company operates roughly 629 warehouse locations across the United States (including Puerto Rico) as of the end of fiscal 2025. These large-format warehouse clubs account for the vast bulk of Costco’s real estate footprint, totaling over 90 million square feet of operating floor space nationwide (up from 91.1 million sq. ft. at the end of 2024). Each warehouse is expansive – averaging about 147,000 square feet per store – and is designed for high-volume, no-frills retail. In addition to retail warehouses, Costco’s facilities include regional distribution centers and logistics hubs (which globally encompass ~32 million square feet of space) to supply its stores and e-commerce orders. The company also maintains office space for its headquarters in Issaquah, WA and regional offices, though retail and industrial (distribution) facilities dominate its U.S. footprint.

Geographically, Costco’s real estate is distributed to align with population centers and affluent suburban markets. California alone hosts about 23% of all U.S. Costco warehouses (143 out of ~630 stores), reflecting Costco’s strategy of saturating high-demand regions. Other states with major concentrations include Texas (44 warehouses) and Washington (35), followed by Florida, Illinois, New Jersey and Arizona, each with 17–35 locations. Costco is present in 47 states plus D.C. and Puerto Rico, with only a few less-populous areas (e.g. West Virginia, Wyoming, Rhode Island) lacking a Costco outlet. This strategic clustering in dense and economically strong markets allows Costco to maximize foot traffic and member penetration. Notably, Costco tends to build warehouses in suburban locations where real estate costs per square foot are lower, balancing affordability with accessibility. Each site typically features ample parking and may include ancillary services like gas stations, pharmacies, and food courts to further drive member visits without requiring separate properties. Overall, Costco’s U.S. footprint is characterized by a relatively small number of very large stores – it operates fewer locations than other big-box retailers, but each warehouse draws customers from a wide radius, enabling high sales volumes per site.

Operational Efficiency Metrics

Costco’s operational model yields exceptionally high efficiency metrics relative to traditional retailers. With about 219,000 employees in the U.S. (out of ~333,000 globally as of late 2024), Costco’s staffing is lean for the amount of space and sales it handles. This equates to roughly one employee per 416 square feet of warehouse space (approximately 2.4 employees per 1,000 sq. ft.), underscoring the sparse staffing of its warehouse clubs. By design, Costco stores operate with limited labor relative to their size – the company notes that its warehouses run on a 70-hour week (shorter operating hours than many retailers) and utilize techniques like storing merchandise on high racks and selling directly from pallets, which reduces labor required for stocking and customer services. This model keeps employees-per-square-foot low while sustaining high throughput. For context, a typical supermarket or supercenter employs far more staff per square foot due to extensive merchandising and longer hours, whereas Costco’s members are accustomed to a self-service, no-frills shopping experience that is labor-efficient.

Revenue productivity is equally impressive. According to MMCG data, each Costco warehouse in the U.S. averages roughly $260 million in annual sales. Given an average store size of ~147k sq. ft., this translates to approximately $1,700–$1,800 in revenue per square foot of selling space – a figure several times higher than the retail industry average. By comparison, many big-box retailers generate only a few hundred dollars of sales per square foot. Costco’s high sales density reflects its ability to move large volumes of merchandise with rapid inventory turnover in a limited-space format. Additionally, Costco’s revenue per employee is extraordinarily high: each U.S. employee contributes an estimated $850,000+ in annual revenue, whereas the warehouse club and supercenter industry average is only about $348,000 revenue per employee. In other words, Costco generates well over double the sales per employee that its industry peers do, highlighting superior labor productivity. This efficiency stems from the company’s streamlined operations (e.g. minimal in-store services, bulk packaging, and a focus on fast-selling SKUs) and its scale economies. Despite offering generally higher wages than competitors, Costco’s labor expense as a percentage of sales remains low because each warehouse funnels an enormous volume of sales with a relatively small staff.

Another key metric is Costco’s sales per store, which far outstrip competitors. Costco runs only ~8% of all U.S. warehouse club and supercenter locations (around 630 out of nearly 8,000 industry establishments), yet it accounts for roughly 25% of the entire segment’s sales. This means an average Costco warehouse sells 3× to 4× more than the typical industry store, a testament to its operational efficiency and strong consumer demand at each location. In summary, Costco’s U.S. operations achieve remarkable efficiency: low headcount relative to space, high revenue per square foot, and high sales per employee. These metrics indicate a well-tuned high-volume, low-cost model that is difficult for competitors to match.

Revenue and Market Share

Costco’s financial footprint in the U.S. market is enormous. In 2025, Costco’s U.S. operations generated approximately $192 billion in revenue (net sales) according to MMCG data, representing roughly 25% of the warehouse clubs & supercenters industry’s sales. This cements Costco as the second-largest player in the segment by a wide margin. The only larger competitor is Walmart Inc. (inclusive of Walmart Supercenters and Sam’s Club), which amassed about $476 billion in U.S. revenue for around a 62% market share in 2025. No other company approaches these two in scale – all other competitors combined make up only the remaining ~13% of industry sales. This duopoly underscores a highly concentrated industry: together, Walmart and Costco command roughly 87% of U.S. warehouse-club-and-supercenter revenues in 2025, reflecting formidable economies of scale and brand loyalty at the top. Costco’s ~$192 billion in U.S. sales also makes it one of the largest retailers in the country overall (by comparison, it’s often ranked the third-largest U.S. retailer behind Walmart and Amazon).

Importantly, Costco’s market share has been rising modestly. In 2024, Costco accounted for about 24% of industry sales, and its share ticked up to roughly 25% in 2025. This gain came as Costco’s U.S. revenue grew an estimated ~4–5% year-over-year (from about $184 billion in 2024 to $192+ billion in 2025), outpacing the broader industry’s growth. According to MMCG data, overall industry revenue grew only about 1.9% in 2025, reaching roughly $770–$772 billion. Thus, Costco continued to capture a larger slice of the pie by growing faster than competitors. Meanwhile, market-leader Walmart saw a slight dip in share (from ~62.8% in 2024 down to ~62.0% in 2025) as its growth was more subdued. The net effect is that Costco narrowed the gap with Walmart ever so slightly. However, the competitive positions remain clearly defined – Costco is the dominant membership-warehouse retailer, far ahead of smaller rivals like BJ’s Wholesale, and it remains second only to Walmart’s supercenter network in the general merchandise/grocery segment. This consistent expansion in sales underscores Costco’s strength in retaining and adding members, growing same-store sales, and opening new warehouses at a steady clip. It’s worth noting that Costco’s business model also includes membership fee income (over $1.7 billion per quarter globally as of 2025) which is not counted in store sales but boosts profitability; this loyal member base supports Costco’s market share by ensuring repeat traffic and high customer spend per visit.

From a productivity standpoint, Costco’s outsized share relative to its store count is striking. As mentioned, Costco runs only a few hundred U.S. warehouses (fewer than one-tenth of industry store count) yet delivers a quarter of industry revenue – a clear indicator of industry-leading store productivity. This gap highlights how Costco’s real estate strategy (fewer, high-volume destinations) contrasts with competitors that operate thousands of outlets. Each Costco location on average generates the revenue of several typical supercenter stores, which speaks to the chain’s ability to draw shoppers from a wide region and capture a large wallet share from its members. Overall, Costco’s U.S. revenue in 2025 affirms its position as a retail powerhouse: it is driving significant growth within a fairly mature industry and consolidating a large portion of the industry’s economic activity under its roof.

Strategic Insights and Industry Implications

Costco’s efficiency metrics and footprint strategy have important strategic implications in the context of the warehouse retail industry. Firstly, Costco’s revenue per employee and per store far exceed industry benchmarks, signaling a structural cost advantage. The average warehouse club/supercenter retailer only generates about $350k in annual revenue per employee, whereas Costco exceeds $800k per employee – a result of its high sales volumes and lean staffing. This means Costco can afford to pay higher wages and still enjoy lower labor cost per dollar of sales, helping it attract and retain a stable workforce (Costco famously has a ~90% one-year employee retention rate in U.S./Canada). The industry at large struggles with low productivity and thin margins, but Costco’s model flips that script: by running very large stores with high throughput and limited SKUs, it achieves productivity that competitors find difficult to match. In essence, Costco’s operational efficiency is a competitive moat. It allows for lower prices to consumers (bolstering Costco’s value proposition) while still maintaining profitability. Indeed, Costco’s U.S. operating profit margin hovers around 3.5% – a slim margin in absolute terms, but slightly higher than the industry average ~2.7%. This indicates Costco’s efficiency translates into both lower prices for customers and slightly better margins for the company, an enviable balance.

The real estate density and format of Costco’s network play a crucial strategic role as well. With ~630 U.S. warehouses, Costco has opted for a relatively low number of locations serving broad areas, in contrast to competitors like Walmart that operate thousands of outlets. This “fewer-but-larger” store strategy yields several benefits: it concentrates foot traffic into high-volume sites (driving the high sales per store discussed), and it reduces overhead costs per dollar of revenue (fewer buildings and leases to maintain, and marketing efforts can be centralized). Costco typically situates its warehouses in accessible suburban or edge-of-city locations where it can draw from an entire metropolitan region. The high population coverage per warehouse means Costco can achieve economies of scale at each site, which reinforces its low-cost, low-price model. However, this strategy also assumes customers are willing to travel a bit farther for a Costco trip – which, given the strong member loyalty and the destination nature of Costco’s shopping experience, has proven true. Strategically, Costco’s dense-but-limited footprint creates a high barrier to entry for competitors: any new entrant would need to achieve similar volumes per store to compete on price, which is a tall order. Industry analysts (MMCG data) note that economies of scale are critical in this sector and the top two players benefit greatly from them, making it very difficult for smaller chains to gain ground. In fact, as of 2025 there are only about 25 companies in the entire U.S. warehouse club/supercenter industry, and the top two control the vast majority of the market. Costco’s real estate strategy – large stores, strategically placed – is a key reason it holds such a defensible position.

Another strategic element is Costco’s focus on member value and merchandise efficiency within its warehouses. Costco stocks only around 3,700 active SKUs in a store (a fraction of a typical supermarket’s assortment), emphasizing turn-rate and bulk sales. This simplification means Costco can dedicate its spacious warehouses mostly to high-volume products, maximizing sales per square foot. It also invests minimally in store decor or granular product merchandising – the concrete-floor, pallet-stacked warehouse aesthetic is intentional for cost savings. Instead of sprawling aisles of product variety, Costco relies on carefully curated offerings and the treasure-hunt appeal of occasional rotating items. The operational implication is faster inventory turns and less handling, which again boosts labor productivity. Automation and technology further support efficiency: while Costco has been more conservative than some competitors in adopting automation, it has implemented things like self-checkout lanes in many warehouses and uses extensive IT systems for inventory management and logistics. In its supply chain, Costco employs cross-docking distribution centers that quickly move inbound goods to outbound trucks for stores, minimizing storage time and warehouse handling. This logistics efficiency reduces the space and labor needed in distribution (which is reflected in Costco’s relatively small number of distribution facilities given its volume). Across the industry, players are experimenting with automation – for example, Walmart has repurposed some Sam’s Club locations into e-commerce fulfillment centers and is deploying drone delivery in certain markets. Costco’s approach has been incremental: it acquired a logistics firm (Innovel Solutions) to enhance home delivery capabilities, and is likely exploring automation in distribution centers. The big picture is that Costco’s model inherently lends itself to efficiency and is gradually incorporating new technologies to stay competitive without fundamentally altering its core warehouse format.

Costco’s private label and merchandising strategy also bolster its operational model and footprint productivity. The company’s in-house Kirkland Signature brand is a major success, accounting for a significant portion of sales. Kirkland products span diverse categories – from packaged foods and alcohol to apparel and home goods – and are known for quality at lower prices than national brands. The strategic benefit of private label is twofold: it drives higher margins(since Costco can capture the producer’s profit) and it builds customer loyalty (members come to trust Kirkland’s value). This means Costco can devote substantial floor space to Kirkland items, which typically sell in high volumes and reinforce the membership’s appeal. By having a strong private label, Costco differentiates its merchandise mix without needing more store space or more SKUs – the same large warehouse footprint becomes more productive because the company can channel demand to its own brands. Additionally, Costco famously limits item variety (e.g. one or two brands of a given product type, often including Kirkland), which simplifies procurement and avoids the “long tail” of slow-selling products. This strategy yields further efficiencies in inventory turnover and reduces waste of shelf space. In summary, Costco’s merchandising choices amplify the efficiency of its real estate – every square foot in a Costco is tasked with generating maximum sales and profit through high-performing products.

Finally, Costco’s stance on e-commerce and omnichannel strategy has implications for its footprint. Historically, Costco invested less in e-commerce than general merchandise peers, leaning on the strength of its in-store experience. Even in 2025, e-commerce is a relatively small share of Costco’s business – about 7% of total sales in FY2024 came from online channels. However, this is rapidly growing: Costco’s online sales jumped ~15% in 2025 (after ~14% growth in 2024), outpacing many competitors’ e-commerce growth. The company has acknowledged the need to integrate digital with its warehouse model. Strategic initiatives include curbside pickup pilots, improvements to Costco.com and its mobile app, and leveraging warehouses as pickup points for certain large orders. Notably, because Costco’s store network is sparse but high-volume, each site can double as a regional fulfillment node. The addition of services like same-day grocery delivery (through partners like Instacart) and expanding its Costco Logistics arm for bulky items is allowing Costco to participate in e-commerce without a massive dedicated fulfillment center build-out. The impact on footprint so far has been modest – Costco continues to open new warehouses at a steady pace for primary growth, while using existing backrooms and depots to handle most online order fulfillment. In the long run, if digital sales climb, Costco might need more specialized distribution space or micro-fulfillment centers, but the club model’s strength is driving people into stores (often to browse and impulse-buy treasure items). Thus, Costco’s strategy is to augment the warehouse experience with e-commerce rather than replace it. This balanced approach protects its high in-store productivity and justifies the large physical footprint by keeping it relevant in an omnichannel era. The company’s membership model also provides a built-in online audience – with over 81 million paid U.S. household members in 2025, Costco can drive adoption of online offerings among an already loyal customer base.

In conclusion, Costco’s U.S. operations in 2025 demonstrate a textbook example of operational excellence in retail. The company leverages a unique real estate strategy – big stores in key locations – to achieve incredible sales concentration. It marries this with efficiency tactics: very high sales per employee and per square foot, limited SKUs and strong private labels, and a membership-driven model that lowers marketing costs and builds loyalty. The result is that Costco has become an industry pacesetter in productivity and scale, growing its market share steadily. Going forward, the strategic challenge will be balancing its physical footprint expansion with digital transformation. Thus far, Costco’s formula of “large footprint, low cost, high volume” is continuing to pay dividends, suggesting that its competitive advantages in real estate density and operational efficiency will remain hard to beat in the warehouse retail sector.

December 5, 2025, by a collective of authors at MMCG Invest, LLC, retail feasibility study consultants

Sources:

[1] Costco Wholesale Corporation. “Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2025 Operating Results.” Investor Relations News Release, 2025. (Store counts, FY2025 net sales, U.S. vs. international split.)

[2] Costco Wholesale Corporation. “Costco Wholesale Corporation Reports October 2025 Sales Results.” Investor Relations News Release, 2025. (Latest monthly sales; updated warehouse counts exceeding 900 globally and ~630 in the U.S.)

[3] Costco Wholesale Corporation. 2024 Annual Report to Shareholders and Form 10-K for Fiscal Year Ended September 1, 2024. Costco Investor Relations / U.S. Securities and Exchange Commission, 2024. (Detailed description of business model, membership data, global workforce, square footage, e-commerce share.)

[4] Digital Commerce 360. “Costco Ecommerce Sales Grow Double Digits in Fiscal 2025.” Digital Commerce 360,2025. (E-commerce growth rates and online share of sales.)

[5] MMCG internal database. (Industry revenue, revenue growth, revenue per employee, profit margins, market concentration.)

[6] Research & Markets. Warehouse Clubs & Supercenters – 2025 U.S. Market Research Report. Research & Markets, 2025. (Cross-check on industry size and growth.)

[7] Kentley Insights. Warehouse Clubs & Supercenters – 2025 U.S. Industry & Market Research Report. Kentley Insights, 2025. (Supplemental industry financial benchmarks.)

[8] AnythingResearch. “2025 Industry Statistics – Warehouse Clubs and Supercenters.” AnythingResearch Industry Reports, 2025. (Revenue per employee, leverage and margin benchmarks for the segment.)

[9] U.S. Census Bureau. “Advance Monthly Sales for Retail and Food Services, by Kind of Business.” U.S. Department of Commerce, latest 2025 release. (Total U.S. retail sales and growth for macro context.)

[10] ClickOrlando / Graham Media Group. “Dollars & Sense: America Is a Warehouse (Club) Nation.” ClickOrlando.com, 2024. (Warehouse clubs’ share of total U.S. retail and format growth commentary.)

[11] Retail TouchPoints. “Costco Plans to Open 35 New Warehouse Stores by August 2026 on the Back of 8% Sales Growth.” Retail TouchPoints, 2025. (Planned expansion pipeline, new-store counts by region, strategic comments.)

[12] Time Out / Local Media. “Costco to Open Seven New Stores Across the U.S. in 2025.” Time Out, 2025. (Examples of specific new U.S. locations and timing of openings.)

[13] Costco Wholesale Corporation. “Financials – Annual Reports, Proxy Statements, and SEC Filings.” Investor Relations web portal, accessed 2025. (General reference for where official company financial and operating data are sourced.)

[14] Costco Wholesale Corporation. “Company Information & U.S. Warehouse Locations.” Corporate website, accessed 2025. (Summary of U.S. warehouse count by state, description of warehouse format.)

[15] SEC / Last10K. “COST – Costco Wholesale Corp 2024 10-K Summary.” Last10K.com, 2024. (Plain-language summary of 10-K, including discussion of e-commerce, logistics and risk factors.)

[16] XMAP (or similar data provider). “How Many Costco Stores Are in the United States in 2025?” XMAP Blog, 2025. (Independent confirmation of U.S. warehouse count ~629–632 stores.)