Costco Targets 30+ New Warehouses Yearly with Half Overseas Expansion
Costco plans to add at least 30 new warehouses annually over the next 5–10 years, with roughly half of the openings in the U.S. and half in international markets. The company currently operates 923 locations globally and uses strategic cannibalization to open infill stores once clubs exceed $300 million in sales.
1. Expansion Goals
CFO Gary Millerchip outlined a plan to open at least 30 new warehouses annually over the next 5 to 10 years, aiming for roughly half of those in the U.S. and the remainder across Canada, Mexico, Europe, Asia and Australia as part of its long-term real estate roadmap.
2. Strategic Cannibalization
Costco deploys strategic cannibalization by launching infill locations when existing warehouses surpass $300 million in annual sales, redistributing traffic to relieve parking and checkout congestion and enhance the shopping experience.
3. Global Footprint and Real Estate
The company operates 923 warehouses worldwide—including 633 in the U.S. and Puerto Rico, 114 in Canada, and others across Mexico, Japan, the U.K. and more—and has expanded its real estate team while converting former hypermarts and big-box stores to lower development costs.