With more than 10 million members and $ 15 billion in annual sales in Canada, Costco has grown into one of Canada’s largest food giants and one of the most dynamic and popular retail business models for over 20 years.
The Costco formula is unique: to purchase items, you must be a member at a cost of $ 55 per year in Canada. In return, Costco limits its profits on each item sold to 14% and offers a discount policy (generally between 1 and 2% depending on the purchases) for holders of an executive card that costs $ 110 annually. Costco offers a wide range of consumer products. In its Canadian stores, Costco warehouses only accept the Costco MasterCard credit card as well as cash, checks and Interac.
Costco is recognized as one of the banners that best treats its employees: early in 2016, it was preparing to raise the entry wage of its Canadian employees from $ 12 to $ 13.50. The chain is therefore experiencing few recruitment issues. Cashiers, for example, earn more than $ 50,000 a year (source: La Presse).
The story of Costco begins in 1976, when entrepreneur Sol Price launched an avant-garde concept in retail, the warehouse-club. Price Club, located in San Diego, California, was the world’s first membership-based warehouse, a place where purchasing and efficient management practices offer members unprecedented savings.
At the beginning, Price Club was essentially for business people who could buy a wide range of products and wholesale items. But seven years later, Costco Wholesale was launched, this time open to all. Over the next 10 years, Price Club and Costco Wholesale have continued to innovate and grow. In 1993, the two giants merged, forming a talented team of leaders that would make the Costco warehouse club one of the most successful in the world.
Network Profile
Corporate Profile
| Name: | Costco Wholesale |
|---|---|
| Ranking (chains): | 15th of 20 |
| Number of stores in Qc: | 21 |
| Description: | Network of warehouse-clubs |
| Foundation date: | 1976 by Sol Price 1983 by Jim Sinegal |
| Number of employees in Canada: | 30,000 |
| Main Executives: | Joseph P. Portera, Executive VP, Canadian Division |
| Head Office: | Nepean, Ont. |
| Network: | 91 warehouses across the country |
| Website: | Costco Canada |
| Facebook Page: | Costco Canada on Facebook |