Costco is making waves with its most ambitious expansion plan ever. The retail giant has announced plans to open 29 new warehouses in 2025, including 26 brand-new locations and 3 relocations. But that’s not all – the company is also introducing new products, updating its membership system, and making significant changes to its store operations that will affect millions of shoppers.
Major expansion brings Costco to new cities
The first wave of Costco’s expansion kicks off in March 2025 with six new warehouses opening across four states. Two new locations will debut in California, specifically in Brentwood and Highland. Texas will welcome two new stores in Prosper and Weatherford, while Michigan’s Genesee County and Massachusetts’ Sharon will each receive their first Costco warehouses.
This expansion marks a significant milestone for Costco, as it will bring the total number of locations worldwide to over 900. The company has been strategically selecting locations near existing successful stores to help reduce overcrowding and improve the shopping experience. In fact, the new Pleasanton, California location has already demonstrated positive results with better parking availability and shorter checkout lines.
For residents in these areas, the new warehouses mean more than just convenient shopping. Each location creates numerous job opportunities, with positions ranging from entry-level to management roles. The company is known for its competitive wages and benefits, making these openings particularly attractive for job seekers in the retail sector.
Looking beyond the initial March openings, Costco plans to establish new warehouses in several other locations throughout 2025. The company has confirmed upcoming stores in Bend, Oregon; Napa, California; Madison, Alabama; and various international locations including Brantford, Canada; Ogori, Japan; and Torreón, Mexico.
Membership changes impact millions of customers
Along with its expansion plans, Costco has implemented changes to its membership structure. The annual fee for a Gold Star membership has increased from $60 to $65, while the Executive membership now costs $130, up from $120. Despite these increases, membership growth remains strong, with 77.4 million paid memberships currently active.
Nearly half of all members have opted for the Executive membership, indicating a strong commitment to the Costco shopping experience. The higher-tier membership continues to offer additional benefits, including 2% cash back on qualified purchases, which can quickly offset the increased annual fee for regular shoppers.
The membership fee adjustments have already shown positive results for the company, with revenue from membership fees rising 7.6% in the first quarter of the 2025 fiscal year. This additional revenue helps support Costco’s expansion plans and allows the company to maintain its competitive pricing strategy on merchandise.
To enhance security and improve the shopping experience, Costco is rolling out new scanner systems at warehouse entrances. These scanners require members to present their membership cards upon entry, helping to ensure that only valid members access the stores and potentially reducing wait times at checkout.
New products arriving on Costco shelves
January 2025 brings an exciting array of new products to Costco warehouses. For cooking enthusiasts, a premium stainless steel wok set has been added to the inventory, complete with a tempered glass lid and stainless steel turner, perfect for creating restaurant-quality stir-fry dishes at home.
Health-conscious shoppers will find new options like zero-sugar Celsius Fizz-Free Energy Drinks in unique flavors such as blue razz lemonade and peach mango with green tea. The store is also introducing a chai tea sampler set featuring six different loose-leaf blends, catering to the growing interest in specialty teas.
For outdoor enthusiasts and seafood fans, Costco has added a three-pack of smoked wild-caught Alaskan salmon. Sports fans can pick up new Adidas Superlite baseball caps, available in classic black with either white or black logos, perfect for the upcoming baseball season.
The company continues to expand its popular Kirkland Signature line with new additions like improved Seal Top Quart Plus Freezer Bags, demonstrating its commitment to providing high-quality house-brand alternatives to national brands.
Changes to store operations and layout
One of the most significant operational changes coming to Costco stores is the implementation of membership card scanners at entrances. This new system aims to streamline the entry process and ensure that only valid members can access the warehouses, potentially reducing checkout times and improving overall store efficiency.
In a notable shift, Costco plans to phase out its book sections in most stores after the holiday shopping season. This change reflects evolving consumer shopping habits and will allow the company to reallocate valuable floor space to other popular product categories.
The company is also focusing on improving warehouse operations by strategically placing new locations near existing high-traffic stores. This approach has already shown success in areas like the Bay Area, where the new Pleasanton location has helped distribute customer traffic more evenly among nearby warehouses.
These operational adjustments are part of Costco’s ongoing efforts to enhance the shopping experience while maintaining its commitment to competitive pricing and quality merchandise.
Record breaking sales at new locations
The success of Costco’s expansion strategy was immediately apparent with the opening of its 897th store in Pleasanton, California. This location set a new company record for opening day sales, generating an impressive $2.9 million in revenue during its first day of operation.
This record-breaking performance demonstrates the strong demand for Costco’s offerings and validates the company’s strategy of opening new warehouses in areas with established customer bases. The success also suggests that concerns about market saturation may be premature.
The new store’s performance has provided valuable insights for future openings, showing that strategic placement near existing locations can actually boost overall sales rather than cannibalize existing business. This success story is likely to influence the company’s site selection process for future expansion projects.
Industry analysts note that this achievement is particularly significant given the current economic climate and changing retail landscape, indicating strong consumer confidence in Costco’s business model and value proposition.
International expansion gains momentum
While domestic growth remains strong, Costco is also making significant strides in international markets. Of the 29 new locations planned for 2025, ten will be outside the United States, representing a substantial commitment to global expansion.
New international locations include stores in Canada, Japan, and Mexico, with the Brantford, Canada; Ogori, Japan; and Torreón, Mexico warehouses scheduled to open in the coming months. These openings reflect Costco’s growing presence in established markets while exploring opportunities in new regions.
Each international location is carefully adapted to local market preferences while maintaining Costco’s core business model. This includes offering a mix of local and international products, ensuring competitive pricing in local currencies, and maintaining the company’s high standards for quality and customer service.
The success of existing international locations has provided valuable insights for these new openings, helping Costco refine its approach to different markets and cultural preferences while maintaining its distinctive shopping experience.
Price reductions on popular items
Despite recent membership fee increases, Costco continues to demonstrate its commitment to value by reducing prices on several popular items. Notable price drops include Kirkland Signature chicken tenderloins, freshly baked baguettes, and aluminum foil, providing immediate savings for members.
These price reductions come at a time when many retailers are raising prices due to inflation and increased operating costs. Costco’s ability to lower prices on staple items showcases the company’s efficient operations and commitment to passing savings on to members.
The timing of these price reductions, coinciding with the membership fee increase, appears strategic. It helps demonstrate the ongoing value of Costco membership while potentially offsetting any negative reaction to the higher annual fees.
Additional products may see price reductions throughout the year as Costco continues to leverage its growing scale and purchasing power to negotiate better deals with suppliers.
These developments mark a significant chapter in Costco’s history. With 29 new warehouses planned for 2025, updated membership systems, new product offerings, and strategic operational changes, the company is positioning itself for continued success in the retail landscape. The combination of physical expansion and operational improvements demonstrates Costco’s commitment to enhancing the shopping experience while maintaining its core values of quality, value, and member satisfaction.
