Costco expands footprint and nears combined market cap of Home Depot and Lowe's

Costco Wholesale is pursuing aggressive growth through both physical expansion and a robust membership-based economic model. The company plans to open four new locations in October in Texas, New York, Kansas, and California. This aligns with long-term corporate goals to open more than 30 new warehouses annually.

Financially, Costco’s market valuation is approaching the combined market capitalization of Home Depot and Lowe's. As of late summer, Costco was valued at approximately $417 billion, trailing the combined $442 billion valuation of the two home-improvement giants by roughly $25 billion.

Growth is supported by a membership model where customers pay annual fees—$65 for Gold Star and $130 for Executive tiers—to access goods such as groceries, household supplies, and gasoline. This model provides predictable revenue and encourages frequent shopping trips across its more than 900 global locations.