Costco is basically taking over the world, one $1.50 hot dog at a time. If you feel like there’s a new giant metal shed popping up in every other suburb, you aren't imagining things. The retail giant has been on an absolute tear lately. Honestly, it’s a bit wild to see how fast they are moving. While most retailers are shrinking their physical footprint or obsessing purely over e-commerce, Costco is doubling down on the "big box" experience.
The big news? Costco is planning to open 28 new warehouses in 2025 (technically, their fiscal planning covers a mix of new builds and strategic relocations). This isn't just a random guess; it's a core part of their strategy to hit 30-plus annual openings in the very near future. They’re currently hovering around 921 locations globally, and they show no signs of slowing down.
Why the 2025 Expansion Is a Big Deal
So, why does this matter to you? For one, it means more people will finally get access to Kirkland Signature olive oil without driving three towns over. But from a business perspective, it's about "sales productivity." CEO Ron Vachris recently shared that new warehouses opened in 2025 are generating roughly $192 million in annualized sales in their very first year. Compare that to the $150 million that new stores were doing just two years ago. That is a massive jump.
People are clearly hungry for bulk buys.
✨ Don't miss: Online Associate's Degree in Business: What Most People Get Wrong
The 2025 roadmap isn't just about the United States, though the U.S. remains the heart of the operation. About 10 of these new spots are expected to land outside American borders. We're talking Canada, Mexico, and further reaches like Spain, Japan, and Australia. They did have a few hiccups with construction delays in Spain recently, which sort of shuffled the numbers for the fiscal year, but the momentum is still there.
Where exactly are these new stores landing?
If you're wondering if your zip code is on the lucky list, some of the 2025 locations have already been teased or officially opened. We've seen movement in places like:
- Brentwood and Highland, California
- Prosper and Weatherford, Texas
- Sharon, Massachusetts
- Genesee County, Michigan
- Richland, Washington (slated for later this year)
- The Villages, Florida
Texas and California seem to be the perennial favorites for expansion, likely because the demand there is just bottomless. But they are also looking at "relocations." This is a clever move. Instead of just closing an old store, they move it a few miles away to a bigger lot with way more parking and a massive gas station. Because let's be real—the parking lot is usually the worst part of a Costco run.
🔗 Read more: Wegmans Meat Seafood Theft: Why Ribeyes and Lobster Are Disappearing
The Strategy Behind the Build
You've probably noticed that Costco doesn't advertise. They don't need to. Their expansion is their marketing. When a new warehouse opens, it’s an event. In Pleasanton, California, people actually camped out overnight. The first-day sales there hit $2.9 million, a new record.
They are also getting creative with how they build. Traditionally, they wanted a flat piece of land and a massive parking lot. Now, they’re looking at converting existing structures or using multi-story designs in urban areas. This "creative real estate" approach is basically their way of saying they’ll fit a Costco anywhere they can find enough members to support it.
Membership is the Real Engine
Costco isn't really in the business of selling rotisserie chickens; they are in the business of selling memberships. The chicken is just the bait.
💡 You might also like: Modern Office Furniture Design: What Most People Get Wrong About Productivity
As of the latest reports, they have over 81 million paid members. The renewal rate in the U.S. and Canada is a staggering 92.2%. Think about that. Almost everyone who pays for a membership keeps paying for it. That steady stream of cash allows them to keep prices razor-thin on the actual products.
What This Means for Your Wallet
With Costco planning to open 28 new warehouses in 2025, the competition for your grocery budget is heating up. If a new store is coming to your area, you can expect a few things:
- Lower Local Prices: Competitors often drop prices when a Costco moves into the neighborhood.
- Job Opportunities: These warehouses aren't small operations. They usually hire hundreds of people at wages that generally beat the retail average.
- Real Estate Impact: Historically, having a Costco nearby is a net positive for home values, though the traffic can be a headache.
There's also the digital side. Costco is finally (finally!) taking their app and website seriously. They’ve seen a 20% jump in "digitally enabled" sales. They are rolling out things like a digital wallet and better inventory tracking, so you might actually be able to see if that 75-inch TV is in stock before you drive down there.
Actionable Steps for Costco Shoppers
If you’re planning to join the cult of Costco or are already a card-carrying member, here is how to handle the 2025 expansion:
- Watch the "New Locations" Page: Costco updates their official site sporadically. If you see a "Coming Soon" sign in a vacant lot, check the official list to see the projected month.
- Evaluate the Executive Membership: With the membership fee increase that happened recently, you need to spend about $3,000 a year to make the 2% reward on the Executive tier break even. If you’re shopping for a family, you’ll likely hit that easily.
- Download the App Now: They are moving toward digital membership cards and "pre-scanning" baskets to speed up checkout. It’s worth having it set up before the new store crowds hit.
- Check the Gas Station First: If a new location opens near you, the gas station usually opens a few weeks early or has insane promotional pricing to draw people in.
Costco’s growth is a signal that the physical retail world isn't dead—it's just evolving. People still want to touch the products, eat the samples, and hunt for that one "treasure" item in the middle of the store. As they march toward 1,000 locations worldwide, 2025 is shaping up to be one of their busiest years yet.