Costco Opens 7 Warehouses in August as Expansion Accelerates

Costco announced plans to open seven new warehouse locations in August, expanding its footprint across six states. The Issaquah-based retailer now operates 928 warehouses worldwide with nearly 83 million paid members. The expansion is part of Costco’s revised target to open 26 warehouses in 2026 and roughly 30 new locations annually in subsequent years.

Seven August openings span six states

The new locations will open in Albany, New York; Oconomowoc, Wisconsin; Otsego, Minnesota; Mansfield, Texas; Celina, Texas; Stone Mountain, Georgia; and Lee’s Summit, Missouri. The Oconomowoc warehouse is expected to open August 7 near Sawyer Road and Interstate 94. This will be Wisconsin’s 12th Costco location. Texas will receive two of the seven new warehouses, while the other five states each get one.

Costco accelerates real estate pipeline

During its May earnings call, Costco CEO Ron Vachris stated the company’s real estate team continues to focus on increasing its pipeline of new warehouses both domestically and internationally. The chain opened two locations in June in Syracuse, Utah and Pensacola, Florida, and one in Taiwan in July. A Franklin, Wisconsin location is also under construction with a target opening in November 2026.

Expansion signals confidence despite market headwinds

Meyka rates COST a B+ with a neutral recommendation, though the stock trades at a 46.1 price-to-earnings ratio, suggesting investors price in future growth. The company’s 12-month price target stands at $1,096.63. COST closed July 15 at $916.54, down 0.56% on the day. The aggressive expansion plan reflects management confidence in sustained demand for warehouse membership retail despite economic uncertainty.

Member growth supports expansion strategy

Costco’s membership base reached nearly 83 million paid members as of July 15. The company offers two membership tiers: Executive Membership at $130 annually and Gold Star Membership at $65 annually. With 928 warehouses worldwide and a target of 30 new locations per year going forward, Costco is positioning itself for continued revenue growth in the membership retail sector.

Final Thoughts

Costco’s August expansion into seven new markets demonstrates the retailer’s confidence in sustained membership demand. With a B+ Meyka grade and a 12-month price target of $1,096.63 against a current price of $916.54, the stock offers potential upside if the expansion drives member growth and revenue gains.

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