89 Headquarters Plaza, North Tower Suite 1461 Morristown, NJ 07960 908-460-5529 CrowleyLawLLC.com
In This Issue
1. From Grit to Glory
2. Thoughts From a Breakthrough Builder
3. Podcast Preview
4. Inside the Business Logic of a Retail Giant
It’s logical to think that most businesses grow by adding. They add more products, more channels or more convenience, and when they do it right, they add more customers. While many companies have followed this path, it’s not the only path to sustainable growth. Costco has found a different way, and that approach is part of what makes the retail giant so successful. At the end of 2025, Costco had over 81 million paid memberships and more than 900 stores worldwide. Yet for all its size and continued success, Costco is built around a surprisingly narrow business model. The company describes itself as a membership warehouse that keeps costs low and passes savings on to members. It also keeps a much tighter product mix than most retailers. While the average large supermarket carries around 30,000 active stock-keeping units, Costco says a typical warehouse stocks around 4,000. That smaller selection affects buying, storage, pricing and the overall shopping experience. A leaner product mix allows Costco to place larger orders for fewer items, giving the company more leverage with suppliers. It also helps Costco move inventory faster and avoid the drag of managing Scaling Through Restraint Costco’s Smarter Growth Strategy
too many slow-selling products. For customers, the experience is simpler. Costco typically offers only one or two brands for most products, which cuts down on overthinking and comparison. That kind of restraint can look old-fashioned in a market always chasing more, but Costco has shown that doing less doesn’t mean falling behind. In many cases, it’s what makes the rest of the model work. Its membership plans are just as important. Costco doesn’t rely only on what happens in the checkout line. In fiscal year 2025, the company reported $5.3 billion in revenue from membership fees alone. That gives the business a steadier base to stand on and changes the pressure around each sale. Of course, most companies can’t copy that exact setup, but the broader point still holds. Repeat revenue gives you room to think longer term. Costco understands that a business doesn’t win by getting larger at any cost. It wins by growing in ways it can actually sustain.
4 — CROWLEYLAWLLC.COM
Published by Newsletter Pro • NewsletterPro.com
Made with FlippingBook Ebook Creator