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Costco’s Hidden Business Model: A Subscription Powerhouse

Costco’s Hidden Business Model: A Subscription Powerhouse

Author:

Global Cryptocurrency

Published:

2025-10-14 16:07:01

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BTCCSquare news:

Costco Wholesale Corporation (COST) defies traditional retail categorization. Behind its warehouse facade lies a robust subscription engine, with membership fees generating $5.3 billion in fiscal 2025. The model demonstrates remarkable resilience, boasting 90% global renewal rates even after price increases.

Membership revenue grew 14% year-over-year in Q4 2025, fueled by a 6.3% increase in paid memberships to 81 million. September 2024's fee hikes—$5 for Gold Star and $10 for Executive members—further amplified this growth. The near-pure profit nature of these fees creates an enviable financial moat.

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