Costco Corporate Office Contacts – Check Out This Write-Up..

The purpose of this memo is to analyze Costco’s overall performance when compared with Sam’s Club and BJ’s.

Costco Wholesale Corporation is a wholesale club that requires customers to get annual memberships in order to shop at their stores. Costco’s main competitors were Sam’s Club and BJ’s Wholesale. Costco purchased Price Club in 1993 which enabled it to survive inside the competitive wholesale industry. It also adopted a technique which was different in comparison with its major competitor, Sam’s Club This enabled costco corporate phone number to become the greatest wholesale club in the industry in 2001.

I. Costco’s Performance in Relation to BJ’s

Once I compared Costco’s total revenues with BJ’s total revenues in Exhibit 5 of FIN 197 Seminar in Finance case book, I found that Costco’s total revenue were increasing in an increasing rate except for year 2000 to 2001. BJ’s on the other hand, had growing revenues until 1999 when their revenues then began to grow in a declining rate.

Costco has a higher membership fee and more and also this enabled Costco’s total revenue to be more than BJ’s. This membership fee is essential as it is the main cause of the company’s bottom line since sales excluding membership fees barely covers operating expenses. Costco even offers more warehouses and a lot higher sales per store. Costco has warehouses in many international locations while BJ’s just have warehouses in the US. However, Costco has a lower operating and gross margin which shows that BJ’s has better operations and higher product prices than Costco. Costco’s inventory turnover ratio is outstanding since it is larger than BJ’s. This clearly implies that Costco comes with an excellent operating efficiency.

II. Costco’s Performance with regards to Sam’s Club

Sam’s Club, on the other hand, has more members and warehouses in comparison with call costco that makes it Costco’s largest competitor. However, Costco had larger total revenues, sales per store and operating income due to its strategy. This can be because Costco is a lot more internationally dispersed when compared with Sam’s Club since it has more warehouses in international locations. I am not able to compare Costco’s financial statement performance with Sam’s Club because Sam’s Club data is joined with Walmart.

III. Costco’s core strength and strategy

Costco pursues the strategy of centering on lowering the system value of goods and getting few Stock Keeping Units (SKUs) looking at the vendors which enable production savings.

Costco’s core strength was created to provide it with higher total revenues as well as to create value to its customers. Their core strength can be separated into two:

• Targeting a wealthier number of small businesses proprietors and middle-class shoppers which is different from Sam’s Club.

• Refusing to mark up products greater than 14 percent on the distributor’s price

Costco’s technique is really efficient in providing it having a competitive edge on its competitors BJ’s and Sam’s Club. This is surely a long-term value enhancing strategy because when does costco open is always to create value for their customers. They vpaisq definitely obtain many loyal and satisfied customers who do not mind paying an increased membership fee to join Costco. Costco is also a very ethical company because they are not implementing a strategy which serves to lower their costs and cheat customers with their cash in an indirect way.

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