Who goes to Costco?

Roughly one-third of US shoppers are Costco customers, according to data from the analytics firm Numerator prepared for Insider. Numerator found that Costco’s typical shopper in the US is an Asian American woman between 35 and 44 years old who is married and living in a city in the Pacific Northwest.

What is Costco value proposition?

Costco’s unique value proposition (low- cost, “treasure hunt” experience), strong customer retention (90\% historically), and established market share (17.5\% w/in Wholesalers) make them an industry stand-out.

What does the average Costco make in a day?

On average, Costco makes a whopping $5,175 per second, $310,500 per minute, and $18 million per hour in store sales! Additionally, Costco makes $447 million a day in revenue and a staggering $13.6 billion per month in sales.

Is Costco an economy of scale?

Lower prices produce higher sales volume, which generates economies of scale, and allows Costco to lower prices again. Costco’s low gross margin demonstrates this. Low gross margins are a feature, not a bug, since Costco’s efficiency still allows it to earn competitive operating margins.

Why do people buy more at Costco than other retailers?

That sheer serendipity is one of the reasons why Costco shoppers spend nearly 150\% more per shopping trip than shoppers at the average retailer. Another reason is that the average retail markup at Costco is around 11\%, so shoppers know they are getting a good deal. 2 

What is the markup on groceries at Costco?

Another reason is that the average retail markup at Costco is around 11\%, so shoppers know they are getting a good deal. 2  Costco shoppers like a bargain as much as anyone else, but they also have the means to buy in bulk which, for most of the products it stocks, is the only way to buy them.

How much of Costco’s revenue is for home use?

Even though business customers drive about 60\% of CostCo’s revenue, about half of that is for home use, so it’s about 30\% business revenue and 70\% individual consumer revenue. HOUSEHOLD: 35\% of CWC members have 2 person households. 56\% have three or more in their home.

How much money does Costco make from membership fees?

For starters, membership fees generated $3.35 billion in pure revenue in 2019. 2  But the membership fee is also a reason why members keep coming back. 43\% of Costco shoppers paid $60 for a Gold Star membership as of late 2019. 1  That gives them access to Costco bargains for a year.