Costco developed a retail recipe that might have sounded crazy when the company was founded, charging people a fee to allow them to spend money in the store. But it works, in part because Costco is a company that is run very much for the pleasure of its members, and its members are fiercely loyal.

The company uses its massive number of members as leverage when negotiating with suppliers. Though Costco's prices are typically low, getting the absolute lowest price in a category is not always the point. The point, say analysts who follow the company, is delivering good value.

The sheer range of products is astonishing. There are Kirkland diapers and Kirkland bottled waters, of course, but there are also Kirkland wines and liquors. Importantly, Kirkland products are not simply cheaper versions of name brand goods.

If there is a place where Costco lags, it is in e-commerce. There are often minimum order requirements, and products can be more expensive online than they are in the club.

In March 2020, Costco acquired a transportation company called Inovel Solutions that specializes in last-mile delivery, especially for larger goods like major appliances, furniture, mattresses, television grills, patio, fitness equipment and wine cellars.

So just things they've done over the years to really move and get millennials to join have been adding organics in a pretty major way, you know, emphasizing sustainability in more areas.

But Costco memberships may prove more resilient than other such services. We think subscription fatigue is a real thing, but we don't really see it for Costco, because they sell essentials.

There is evidence that Costco's model might be rather resilient and quite exportable, Costco has expanded into countries around the world and in many markets it has proven a hit.

It's funny, I'll admit, I was wrong when they first went in Japan. And I went to go see it 15 years ago, I'm like, 'This is not going to work.' Selling large packaged cube bulk items in a place where the average household is less than half the size of an American home.