Costco is growing fast and plans to open many new stores around the world. Right now, the company has over 600 stores, but that number will soon rise. CEO Ron Vachris shared details during a recent earnings call. He said Costco has already opened seven new stores in the US this spring and plans to open at least 24 more, along with three relocations, before the end of the year. By the end of 2025, Costco expects to have 914 stores worldwide.
This news is exciting for longtime Costco members, who often say the store offers better value than competitors like Sam’s Club. The new locations will give more people access to Costco’s bulk products and deals.
New Payment Option Helps Members with Big Purchases
Costco has also introduced a new payment option this year in partnership with Affirm, a buy-now-pay-later service. This lets members finance bigger purchases from $500 up to $17,500, with repayment periods ranging from three to 36 months depending on the purchase and credit score.
CEO Ron Vachris said the early results of this program are positive. Affirm’s senior executive Pat Suh added that the payment option is especially useful during summer when customers buy big items like barbecues, patio furniture, or appliances. Costco members like to plan ahead and buy in bulk, so this new payment choice helps them manage their spending without hidden fees.
Costco’s Strategy Amid Tariffs and Economic Concerns
There are worries about price increases due to tariffs and the uncertain economy. President Donald Trump’s global tariffs have made things more challenging, but Costco is handling the situation well. CEO Vachris expressed confidence in the company’s teams to keep offering good service and value to members despite these challenges.
Costco’s CFO, Gary Millerchip, explained that the company is shifting more products to local sources, which helps lower prices. Currently, only about 8% of Costco’s US sales come from items imported from China. Millerchip said Costco has managed to reduce costs on some products, like eggs, which have been expensive because of a bird flu outbreak.
To deal with tariffs, Costco is working closely with suppliers to find new ways to keep prices down, including sourcing products from other countries when it makes sense.
Recent Controversies
Costco has recently made some changes that upset members. The company ended a popular travel benefit for members, causing disappointment. Some members also expressed frustration when a new $5.20 food court item was introduced overseas, even accusing the company of “hating America.” These issues have sparked some debate, but Costco’s strong growth and new store openings continue to be the main focus.
Costco is growing rapidly with many new stores planned worldwide, especially in the US. The company is also helping members with a new financing option for larger purchases. Despite challenges like tariffs and rising costs, Costco is working hard to keep prices low and continue providing value. While some recent changes upset members, Costco’s expansion and new services show its commitment to serving customers better in the coming years.
