Costco Wholesale Corporation : Price Club

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Introduction This paper is about the Costco Wholesale Corporation which was originally founded as Price Club on July 12, 1976 in San Diego, CA. It first opened its store in Morena Boulevard in Sa Diego as a retail warehouse. In 1983, Costco began its operations in Seattle, WA. (Marketline, 2014). As a young active duty military, who was married with one child, I remember in the mid 80s that we at Price Club for groceries, office products, car batteries/tires, etc. for our family 's daily need. In 1985, we became a member of the Price Club and I can still remember that the membership fee was at a very low price of $10.00 per year per member. Figure 1. Price Club In 1993, Price Club and Costco merged as a one single warehouse…show more content…
This is why Costco has extremely low rates of turnover and theft by employees. Customers stay loyal because they know that Costco 's low prices do not come at the worker 's expense. By selling a limited number of brand items, keeping costs down, and relying on high volume products, their customers grew in memberships including upscale shoppers and business owners. The following are the current annual membership fee: Business membership - $55.00; Gold Star membership - $55.00; and Executive membership - $110.00 (Costco Profile, 2015). Figure 2. Costco Wholesale Introduction to the problem In 2009, Costco hit a bump on the road where its reported net sales for the third quarter of fiscal year 2009 has declined 5% compared to previous fiscal year. There was a litigation settlement centered on retailer 's membership renewal policy. There was also other damaging influences such as higher employee benefit costs, lower international profits, closing of two Costco Home Stores, and the ongoing weakness in sales - particularly sales of higher-ticket discretionary items (Canning, 2009). In 2011, the company announced that some of its stores in Japan were damaged due to the earthquake and tsunami. The store sustained significant damage and have remained closed for several months due to inspections and repairs. In 2013, Michael Kors Holdings sued Costco
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