Costco Wholesale Corp
Business Description
Costco operates membership warehouses based on the concept that offering members
very low prices on a limited selection of nationally branded and selected private
label products in a wide range of merchandise categories will produce high sales
volumes and rapid inventory turnover. This rapid inventory turnover, when combined
with the operating efficiencies achieved by volume purchasing, efficient distribution
and reduced handling of merchandise in no-frills, self-service warehouse facilities,
enables Costco to operate profitably at significantly lower gross margins than
traditional wholesalers, discount retailers and supermarkets.
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