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Business Strategy Lessons From Costco Business Model - FourWeekMBA

Costco's $270B Empire: Why Membership Fees Drive Profits Costco generates $269.9 billion in annual revenue with 137 million cardholders and a 90% membership renewal rate. The retailer's business model relies on membership fees as its primary profit driver, with 98% revenue from net merchandise sales. This subscription-based approach enables Costco to operate on razor-thin margins while maintaining customer loyalty.