Costco’s ambitious expansion plan for 2025 includes opening 29 new warehouses, with a significant focus on the United States.
At a Glance
- Costco plans to open 29 new warehouses in fiscal year 2025, with 19 in the U.S.
- Six confirmed U.S. locations set to open in March 2025
- Expansion targets states like California, Texas, Michigan, and Massachusetts
- Recent Pleasanton, California opening set record U.S. first-day sales of $2.9 million
- Costco aims to continue rapid expansion beyond 2025, opening about 30 new warehouses annually worldwide
Costco’s Domestic Expansion Strategy
Costco Wholesale Corporation is set to significantly expand its presence across the United States in the coming year. The retail giant has unveiled plans to open approximately 29 new warehouses during its 2025 fiscal year, which runs from September through August. Of these new locations, 19 are slated for the U.S. market, demonstrating Costco’s commitment to strengthening its domestic footprint.
Six locations have been confirmed for March 2025 openings, strategically placed across the country. These include Brentwood and Highland in California, Genesee County in Michigan, Prosper and Weatherford in Texas, and Sharon in Massachusetts. This calculated expansion aims to both explore new markets and alleviate pressure on existing, highly frequented locations.
Record-Breaking Performance and Growth
Costco’s expansion strategy appears to be built on a foundation of recent successes. The company’s CEO, Ron Vachris, highlighted a remarkable achievement during a recent earnings call.
“The opening in Pleasanton set a new Costco mark for highest-ever opening day sales for a U.S. warehouse at $2.9 million,” Ron Vachris said.
This record-breaking performance in Pleasanton, California, underscores the continued strong demand for Costco’s offerings and validates the company’s aggressive growth plans. The success of new locations not only provides more shopping options for customers but also creates job opportunities and allows employees to advance their careers in dynamic, growth-oriented environments.
Long-Term Growth Vision
Costco’s 2025 expansion is part of a broader, long-term growth strategy. The company plans to maintain this pace of growth beyond 2025, targeting about 30 new warehouses annually worldwide. This sustained expansion will focus not only on the United States but also on international markets, particularly in Europe, Asia, Canada, and Mexico.
“Some of these projects take a lot longer than other ones will, so they’ll come on at different times. But I think the outline of 30 a year seems very realistic and a good portion of those, not quite half, to be outside of the U.S.,” CEO Vachris said.
This balanced approach to domestic and international growth demonstrates Costco’s commitment to enhancing its global presence while continuing to serve its core U.S. market. By strategically placing new warehouses near existing successful stores, Costco aims to improve the overall customer experience by offering better parking and shorter checkout lines.
Financial Implications and Membership Growth
Costco’s expansion comes on the heels of a membership price increase implemented in September 2023. Gold Star memberships rose from $60 to $65, while executive memberships increased from $120 to $130. This price adjustment has already shown positive results, with membership fee revenue rising 7.6% in the first quarter of the 2025 fiscal year, reaching $1.17 billion.
The company currently boasts 77.4 million paid memberships, with an impressive 47% being executive memberships. As Costco continues to expand its warehouse network, these numbers are likely to grow, further solidifying the company’s position in the retail market and potentially driving increased revenue and profitability.
