| Costco Wholesale Corporation operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills and self-service warehouse facilities. As of September 3, 2006, the Company operated 487 warehouses: 354 in the United States and four in Puerto Rico; 68 in Canada; 18 in the United Kingdom; 5 in Korea; 4 in Taiwan; 5 in Japan; and 29 warehouses in Mexico (through a 50%-owned joint venture). The Company buys the majority of its merchandise directly from manufacturers and route it to a cross-docking consolidation point (depot) or directly to its warehouses. Its warehouse format averages approximately 140,000 square feet. It carries an average of approximately 4,000 active stock keeping units (SKU’s) per warehouse in its core warehouse business. Appliances, equipment and tools feature commercial and professional models. The Company's merchandise categories include Sundries, including candy, snack foods, tobacco, alcoholic and nonalcoholic beverages and cleaning and institutional supplies; Hardlines, including major appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, furniture, cameras and automotive supplies; Food, including dry and institutionally packaged foods; Softlines, including apparel, domestics, jewelry, housewares, media, home furnishings and small appliances; Fresh Food, including meat, bakery, deli and produce; and Ancillary and Other, including gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel. The Company’s ancillary businesses include Food Court and Hot Dog Stands; One-Hour Photo Centers; Optical Dispensing Centers; Pharmacies; Gas Stations; Hearing Aid Centers; and Print Shops and Copy Centers. The Company’s Ecommerce businesses, costco.com in the U.S. and costco.ca in Canada, provide its members additional products, such as digital photo processing, pharmacy, travel and membership services. Competition The Company’s competitors include Wal-Mart, Target, Kohl’s, Lowe’s, Home Depot, Office Depot, PetSmart, Staples, Best Buy, and Barnes & Noble. History Costco Wholesale Corporation was founded in 1976. |
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