Costco, a representative of a member warehouse-type discount store, was under fire at the second quarter earnings presentation in March. “How is the company managing the crowded parking lot?” This is because parking difficulties are continuing due to the influx of customers. In July, a video of a Costco user angry at a car parked across two parking spaces was posted on Reddit, an online community in the U.S., saying, “There is no parking space,” and more than 10,000 “likes” were received. According to CNBC and other foreign media on the 25th, Costco recorded $86.16 billion in sales in the fourth quarter of 2025 (June-August). This is up from $79.7 billion in the same period last year. It slightly exceeded LSEG’s tally analyst expectations. As the number of members increased across the age group, Costco’s sales, which combined net sales and membership fees, increased. Sales for the entire fiscal year 2025 were $275.24 billion, up about 8.1% from last year.
The background of Costco’s advance is GenZ (Gen Z, Generation Z) in the United States. They are more familiar with online shopping than anyone else, but as prices are soaring under inflation, they flock to warehouse-type discount stores in search of cost-effectiveness. According to the U.S. Consumer Price Index (CPI) in August, gasoline and electricity prices rose 13.8 percent and 6.2 percent, respectively, year-on-year. Food prices rose 0.6 percent month-on-month in August, the highest in two years.
Gary Miller, Chief Financial Officer of Chip, told CNBC, “The average age of members has decreased, and half of the new members are under the age of 40 every year. Millennials are steadily flowing in.” BJ’s Wholesale Club, a warehouse-type discount store such as Costco, also recorded a stock price increase of more than 200% after COVID-19 due to an increase in the number of members and a rise in sales led by Gen.G. U.S. financial information company Go Banking Rate described this phenomenon as “Gen.G’s invasion of Costco.” Gen.G’s warehouse-type store shopping trend introduced membership costs of “one-nth” and maximizing online and offline benefits such as joint bulk purchases and discount coupons. “Circana, a market research firm, said, “Customers aged 25 to 34 are growing the fastest in the product spending sector of warehouse-type discount stores excluding food products,” adding, “In addition to the advantages of inexpensive products, young Americans who have moved to suburbs or rural areas after COVID-19 are becoming new customer bases.”
Despite the aftermath of the Trump administration’s tariff policy, warehouse-type discount stores continue to operate aggressively by expanding local procurement in the U.S. and simplifying product lines. Costco will introduce 30 more stores every year and BJ’s Wholesale Club will introduce 25 to 30 more stores across the U.S. by 2027.
JENNIFER KIM
US ASIA JOURNAL
