Costco is more than just a place to buy in bulk—it’s a retail giant with a treasure trove of secrets that have helped it dominate the industry. These 7 mind-blowing facts will make you look at Costco in a whole new way.
1. Costco Sells More Hot Dogs Than Major Sports Stadiums
Costco’s famous $1.50 hot dog and soda combo isn’t just a shopper favorite—it’s a cultural icon. Incredibly, Costco sells over 100 million hot dogs each year, outpacing every MLB, NFL, and NBA stadium combined!
Even more amazing? The price has stayed the same since 1985, defying inflation for nearly four decades.
2. Costco Spends $0 on Traditional Advertising
While most companies pour millions into advertising, Costco doesn’t spend a single dollar on traditional ads. The company relies on word-of-mouth and its reputation for quality and value to draw customers in.
The only form of outreach it does? Sending coupons to members. Now that’s a smart business model!
3. Costco Owns a Chicken Farm to Keep Rotisserie Chicken Prices Low
Costco’s $4.99 rotisserie chickens are legendary, and the company has gone to extreme lengths to maintain that unbeatable price.
To keep costs down, Costco built its own poultry processing plant in Nebraska, producing 100 million chickens annually. This allows them to offer fresh, affordable rotisserie chicken while keeping prices stable.
4. Costco Sells Half of the World’s Cashews
Costco is a global leader in cashew sales, moving more than $15 million worth of cashews annually.
By partnering with independent farmers in Africa, Costco has created a supply chain that supports both ethical sourcing and mass distribution, helping it dominate the market.
5. Kirkland Signature Is a Private Label Powerhouse
Costco’s Kirkland Signature brand isn’t just a budget-friendly alternative—it’s a retail powerhouse.
Kirkland products account for nearly one-third of Costco’s total revenue, and many of these items are made by major brands like Starbucks, Duracell, and Huggies. You’re getting top-tier quality at a fraction of the price!
6. Costco Sells Luxury Goods You Wouldn’t Expect
While bulk toilet paper and snacks are Costco staples, the store also sells luxury items that surprise even seasoned shoppers.
From $400,000 diamond rings to designer handbags and high-end watches, Costco offers big-ticket items at deep discounts. It’s the perfect place to score a luxury deal!
7. Costco Capped Product Markups at 15%
Costco’s commitment to low prices extends to its markup policy. Unlike most retailers that mark up products by 50% or more, Costco caps its markup at just 15%.
This is one of the key reasons you’ll find some of the best prices around, whether you’re shopping for groceries, electronics, or home goods.
Conclusion
Costco isn’t just a bulk shopping destination—it’s a retail innovator with game-changing strategies that have helped it thrive. Whether it’s keeping hot dog prices the same for nearly 40 years or selling half the world’s cashews, these facts prove Costco is anything but ordinary.
Next time you visit, you’ll appreciate the genius behind this retail giant!
