10 Big Costco Changes Coming This Year Just Announced
Costco is gearing up for some big changes in 2025, as revealed in its latest earnings call on March 6. If you're a member, you'll want to pay attention. From opening new locations—including a milestone 900th warehouse—to extending gas station hours and launching new Kirkland Signature products, the wholesale giant is making moves to enhance your shopping experience. Costco is also doubling down on digital upgrades, increasing employee wages, and keeping a close watch on tariffs that could impact prices. Whether you're a loyal shopper or just curious about what's ahead, here's a breakdown of the biggest Costco changes coming this year and how they could affect your next trip.
Major Expansion Plans
Costco is ramping up its expansion efforts, with plans to open 28 new warehouses in fiscal year 2025. This includes six immediate openings in the U.S., with the milestone 900th location set to launch in Sharon, Massachusetts. The company aims to increase its footprint both domestically and internationally, further solidifying its dominance in the wholesale retail space.
Extended Gas Station Hours
In an effort to improve convenience for members, Costco has extended its gas station hours across North America. Stations are now staying open an hour later than before, with some also opening earlier. This move is expected to drive increased fuel sales and enhance overall customer satisfaction.
Employee Wage Increases and Benefits Enhancements
Costco has implemented a significant wage increase for its U.S. and Canadian employees. The top-of-scale wage for service clerks is now $31.90 per hour, with additional $1 per hour increases scheduled for 2026 and 2027. The company also raised its minimum wage to $20 per hour and expanded paid vacation benefits, reinforcing its commitment to providing competitive compensation.
Potential Impact of Tariffs
Costco is closely monitoring the evolving tariff landscape, particularly on imported goods from China, Mexico, and Canada. The company expects potential cost increases but is focused on mitigating the impact through strong supplier relationships and strategic sourcing. Costco may also adjust its product mix to maintain competitive pricing.
Increased Investment in E-Commerce and Digital Innovation
E-commerce sales surged by 20.9% in Q2, driven by strong demand in categories such as home furnishings, sporting goods, and electronics. Costco is enhancing its digital presence with personalized promotions and a new app feature that allows members to check local warehouse item availability. The company is also expanding its online marketplace, Costco Next, which now features nearly 100 vendor sites.
New Kirkland Signature Product Launches
Costco continues to grow its private-label brand, Kirkland Signature, with new offerings such as Kirkland Signature Lager, Vodka and Soda, and improved diapers with better absorbency and fit. These additions reinforce Costco's strategy of providing high-quality, value-driven alternatives to national brands.
Changes in Consumer Spending Trends
Costco executives noted a shift in consumer spending habits, with members prioritizing value and essentials over discretionary purchases. While premium meat sales remain strong, there is a noticeable increase in demand for lower-cost protein options like ground beef and poultry. Costco is adjusting its merchandising strategy to cater to these evolving preferences.
Strategic Advertising and Retail Media Expansion
The company is gradually entering the retail media space, working with about 10 brand partners on digital advertising campaigns. This effort aims to capitalize on supplier marketing budgets while maintaining Costco's core mission of delivering value to members. The company is also testing more personalized promotions through digital communications.
Potential for Extended Store Hours
While there are no immediate plans to extend warehouse hours, Costco is considering adjustments based on member demand. The recent extension of gas station hours indicates that the company is open to operational changes that enhance member convenience.
Future Growth in International Markets
Costco sees continued growth potential in international markets, with plans to expand in Canada, Mexico, Asia, and Europe. Recent membership fee increases in Japan and Korea suggest a strategy of gradually aligning international pricing with U.S. standards while maintaining strong renewal rates.
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