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Net sales for Costco's fiscal year 2025 totaled $269.9, an increase of 8%. This is a $20.287 billion increase in Sales, and a Net Income of $8.1. Costco added 24 new locations. They have 341,000 employees and 145 million members worldwide. This is the kind of growth Service Leaders have. Very few executives understand the financial windfall that occurs when you build a brand around great service, price, and quality. Anything you buy at Costco has a lifetime return policy. (Computers have a more limited time)
The $1,000 I invested in Costco in May 2023, as of November 30, was worth $38,563. The dividends each year are almost $1000. All money is reinvested. The $1,000 I invested in Walmart is now worth $9.091, which owns Sam's Club. Both are competitors of Costco. Almost all of Walmart's stock growth has been in the last 2 years.
On page 21, it will show how the stock performs over the last 5 years, and the Average Sales per Warehouse is now $272 million. This is incredible.
Costco understands Strategy. They are good at reducing the Friction. They are very good at Speed. With 2 employees at each checkout counter, you never have to wait very long to be checked out. On any returns, it is fast with no disputes. Each vendor has to reserve 5% of its sales to cover all returns. With 923 locations as of December 31, 2025, when they place an order, it's for millions of dollars. The quality better be good, or the product will come back.
What are your plans for 2026? The Service Strategy is the only way to have rapid growth, and NO ONE will copy you for at least 10 to 20 years. If you want to drive a Service Culture, contact SQI and call John, WhatsApp 1-612-392-5636 or email John@servicequality.com.
Service leaders like Costco know the value and strategy. Any organization can increase the value of the business by 50%, 200% and 2000% if they focus on the Service Strategy.
You have to be ready to build and train your staff on customer service. Superior customer service depends on 341,000 employees at Costco. Whether you have 20 employees or 200 or even 2000, you must be ready to invest in them. Ninety-nine percent of customer contact is with your front-line staff. Usually, the least trained, least paid, least valued, but easiest to change and build.
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