Costco is a publicly traded membership-only warehouse club with 468 warehouses. The chain’s revenue in millions in 2014 was $80,477, it employed approximately 195,000, and had 76.4 million members. 39% of all members were executive members who paid $110 annually and received a 2% reward up to $750/year. Remaining members paid $55 annually. Each Costco warehouse carries an average of 3,700 SKUs, with items ranging from produce to televisions. In 2014, 17% of sales came from ancillary and other services including gas, pharmacy, food court, optical, photo, hearing aid, and travel. Costco’s stated mission or value proposition is to keep operating costs down and pass the savings on to their members.
Costco’s Good Jobs Score Overview
Costco’s Customer Score
The Good Jobs Customer component is comprised of ACSI, Consumer Reports, and Yelp scores (see Methodology for more details). Although not part of the Good Jobs Score, the following table provides additional data on customer satisfaction.
Costco Score Industry Score Experience Rating I 79% 75% Forgiveness Rating II 49% 41% Trust Rating III 75% 61% Customer Service Rating IV 69% 59% Source: Temkin RatingsV
Find Costco at ... ConsumerAffairs.com PissedConsumer.com CustomerServiceScoreboard.com
Costco’s Employee Score
The Good Jobs Employee component is comprised of Glassdoor and Indeed scores (see Methodology for more details). Although not part of the Good Jobs Score, the following charts provide additional data on employee satisfaction and level of unionization.
The above charts provide additional information as measured by Glassdoor.com. They serve to show Costco’s relative position to its peer-group and do not imply a causal relationship between the dimensions.
Costco’s Productivity Score
|Fiscal year end||28/8/2011||2/9/2012||1/9/2013||8/31/2014|
|Number of employees||164,000||174,000||184,000||195,000|
|Number of stores||429||439||451||468|
|Total store sqft² (m)||62.1||63.7||65.5||68.1|
|Average store size (sqft²)||144,755||145,102||145,232||145,512|
|Gross margin (%)||13.53%||13.33%||13.46%||13.50%|
|EBITDA margin (%)||3.70%||3.72%||3.80%||3.77%|
|Same-store sales growth (%)||7.00%||7.00%||6.00%||5.00%|
|Source: 10-K filings with the S.E.C.|
Costco’s CEO W. Craig Jelinek
Costco’s Disclosure Details
The following data are based on SASB disclosure recommendations for the Human Capital dimension in the restaurant industry. They will be updated once SASB provides recommendations for the retail industry.
|Voluntary Turnover Rate||Not Reported|
|Involuntary Turnover Rate||Not Reported|
|Average Hourly Wage (by region)||Not Reported|
|% of Employees at Minimum Wage||Not Reported|
|Amount of legal/regulatory fines and settlements associated with labor law violations||Not Reported|
|Amount of tax credit received for hiring through enterprise zone programs |
(these State and Local government programs encourage companies to create jobs in specific geographic area targeted for economic revitalization)
Footnotes [ + ]
|I.||↑||Temkin’s Experience Rating is based on consumer feedback of their interactions with companies. It is the average of three component scores: Success (was the last interaction successful), Effort (ease of interaction with company), and Emotion (feeling during/after the interaction).|
|II.||↑||Temkin’s Forgiveness Rating is based on consumer feedback of their interactions with companies. It is the consumer’s response to whether they would forgive a company if it made a mistake.|
|III.||↑||Temkin’s Trust Rating is based on consumer feedback of their interactions with companies. It is the consumer’s response to which extent they trust a company to take care of their needs.|
|IV.||↑||Temkin’s Customer Service Rating is based on consumer feedback of their interactions with companies. It is the consumer’s rating of how satisfied they are with their recent customer service experience.|
|V.||↑||Temkin is a customer experience research and consulting firm that evaluates organizations based on feedback collected from consumers.|
|VI.||↑||Inventory Turnover has been calculated using FIFO COGS and Inventory. For companies that use the LIFO method, COGS and inventory have been adjusted to FIFO.|