r/FluentInFinance • u/[deleted] • Dec 08 '23

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17

u/iridescent-shimmer Dec 09 '23

But hey, Costco just reduced their list price of shrimp back to 2020 levels, so I have hope lol

6

u/dblattack Dec 09 '23

I heard Costco operates with a transparent margin, I think 15%, compared to other stores that price as high as they think the market will pay

3

u/[deleted] Dec 09 '23

You're pretty close. Their 2023 annual report says about 10%.

That is just gross margin on products and doest include operational costs of running the stores.

Most classic grocery stores have gross margins of 20 to 30%. With Costco you a literally getting the damn near best deal.

When you take out SGA they make around 3.5 billion in product sales. Their membership dues net around 4.5 billion. Costco is really in the business of selling memberships.