Costco CEO says this is the most important item the store sells—it's not the $1.50 hot dog
What does Costco's CEO consider the most important item sold?
Costco's CEO, Ron Vachris, considers the membership card the most important item sold at the store. With a 130 million-strong membership base, each paying between $60 and $120 annually, the membership fees drive most of Costco's profits and keep customers coming back for the wide range of products offered.
How has Costco's member base changed since 2016?
Costco's member base has grown significantly since 2016, with a 50% increase in members. This expansion has resulted in membership fees generating $4.6 billion in revenue last year. Additionally, Costco's members display strong loyalty, with 90% of cardholders opting to renew their memberships according to the company's most recent annual report.
What percentage of Costco members renew their memberships?
According to Costco's most recent annual report, 90% of its cardholders opt to renew their memberships. This high renewal rate contributes to Costco's strong financial foundation and membership loyalty.