Costco memberships grew 5.6% globally in the fiscal year ended August 29, 2021, to a total of 111,600.
Thus, the company raised this indicator again, after it went from 98,500 to 105,500 memberships in the years ended 2019 and 2020, respectively.
Costco is primarily engaged in the operation of membership warehouses in the United States, Puerto Rico, Canada, United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China and Taiwan.
Costco operated 815, 795, and 782 warehouses worldwide on August 29, 2021, August 30, 2020, and September 1, 2019, respectively.
Additionally, the company operates e-commerce websites in the United States, Canada, Mexico, the United Kingdom, Korea, Taiwan, Japan, and Australia.
Members can use their memberships across all company stores and websites.
In particular, Gold Star memberships are available to individuals; Business memberships are limited to businesses, including individuals with a business license, retail license, or similar document.
Business members can add additional cardholders (affiliates), to whom the same annual fee applies.
Also, affiliates are not available to Gold Star members.
The annual fee for these memberships is $ 60 at their US and Canadian operations and varies in other countries.
All paid Costco memberships include a free family card.
Moreover, its membership renewal rate was 91% in the United States and Canada and 89% worldwide at the end of 2021.
Most members renew within six months of the renewal date.
The renewal rate is a final calculation that captures renewals during the seven to 18-month period prior to the report date.
Costco purchases most of its merchandise directly from manufacturers and ships it to cross-docking consolidation points (warehouses) or directly to their warehouses.
Their warehouses receive large shipments from manufacturers and they quickly ship these products to warehouses. This process creates cargo volume and handling efficiencies, reducing costs associated with traditional multi-step distribution channels.
For our e-commerce operations, the company ships merchandise through its warehouses, its logistics operations for large and bulky items, as well as through direct shipping and other delivery arrangements with its suppliers.