Costco member renewal rate
93% of Costco members in the US renew their membership every year, a rate that rivals the monthly retention of most streaming services.
Where this was said
Costco Today: Scale, Revenue Stats, and the Treasure Hunt
At 1:58:50 · chapter starts 1:54:20
Ben catalogs the extraordinary breadth of Costco's current footprint: $230 billion in revenue, making it the third largest US retailer behind Amazon and Walmart; 124 million members worldwide; one-third of US shoppers are Costco customers; 860 stores; 300,000+ employees; $1,800 per square foot (up from $600 in 1998, approaching Tiffany's $3,000); average of $269 million in revenue per store, with top stores generating $300–400 million; same-store sales grew 14% last year. David introduces the treasure hunt dynamic — approximately 25% of SKUs rotate as one-time deals, intentionally running out, designed to make each Costco visit feel like a discovery rather than a routine errand. Fresh food in the back ensures customers traverse the whole store. The annual report publishes store cohorts: Year 1 of a store opened last year outperformed Year 5 of a store opened in 2014, suggesting the model is improving in its learnings and execution even as individual stores mature.
Membership revenue share of operating income
Costco's membership fees, which total about $4.5 billion, represent approximately 70% of the company's total operating income despite being a tiny fraction of gross revenues.
Costco's Executive Membership: The Triple Play Loyalty Machine
Executive members pay $120/year instead of $60 and earn 2% cashback, capped at $1,000. The break-even point is about $3,000 of annual Costco spending — right around the household average. 45% of worldwide paid members are executive members, but they generate 73% of Costco's sales. Add the Citi Visa card and renewal rates climb even further — what Costco calls the 'triple play.'
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