[tatersolid]

> Costco is a subscription business.

I don’t think that’s accurate. The membership fee is a trivially small percentage for most members, and can’t be a significant margin driver. Especially for those members who have a pack of kids and shop Costco regularly, spending hundreds of dollars per visit.

I personally think the membership fee exists as a gating function to keep less-prolific customers out of overcrowded stores on weekends.

[hermanradtke]

Costco prices are very low. They intentionally make very little margin on what people buy.

Their margin comes from subscriptions.