There's an obvious part of Costco's business model that makes it different from other retailers.
Most stores allow you to walk in the door without having to pay a membership fee. At Costco, you have to spend a minimum of $65 a year on the store's basic Gold Star membership. And if you like the idea of getting cash back on your purchases, you can spring for an Executive membership at an annual cost of $130.
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Costco relies heavily on membership fee revenue to make money. Because of this, the company makes a point to put a strong emphasis on customer service.
Costco's commitment to customer service is reflected in a number of ways, including:
- A generous return policy
- A heavy focus on quality
- An exciting rotation of inventory
And that's in addition to the fact that Costco intentionally keeps its prices low to offer members maximum value, even if that means cutting some of its profits.
It's no wonder, then, that Costco's member count reached an astounding 137 million as of 2024.
The company does a great job of attracting and retaining members because it goes out of its way to put its customers first.
When members talk, Costco listens
Costco doesn't just value members out of the goodness of its heart. Because the company's business model is based on memberships, it has no choice but to prioritize customer needs.
But Costco has done an exceptionally good job of that this year.
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Earlier in 2025, Costco took member feedback to heart and expanded its gas station hours both during the week as well as on weekends. And in an earnings call earlier this year, CEO Ron Vachris said the company is considering expanding its warehouse club hours as well.
That's not surprising. Vachris himself worked his way up the ranks at Costco, and he knows how important members are to the company's bottom line.
In a 2024 interview with Fortune, Vachris stated, “The most important item we sell is the membership card. Everything we do supports that transaction.”
Costco makes a tough decision on store hours
Costco members are used to the store being open seven days a week. But as much as Costco cares about members, it also cares about its employees.
Costco aims to strike a balance between being open enough to serve its members, but also giving employees some much-deserved time off for holidays. To this end, it only closes its warehouse club stores seven times a year.
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One of those occasions, however, is Labor Day, which means customers will need to plan around that closure to ensure that they're well stocked for the holiday weekend.
The other six days Costco closes for are:
- New Year’s Day
- Easter Sunday
- Memorial Day
- Independence Day
- Thanksgiving Day
- Christmas Day
Of course, not being able to shop at Costco on Labor Day may upset some members. But it's fair to say that Costco does more than enough to make up for the occasional closure.
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On top of the numerous perks it's added in recent years, Costco also recently extended shopping hours for Executive members. People who pay for an Executive membership can now get into the store up to an hour early, giving them more access to the products they want to buy without the usual crowds.
Maurie Backman owns shares of Costco.
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