15 Unexpected Facts About Costco (Including Where the Name Comes From)

It’s no secret that Costco is a popular retailer, but the store is much more than just a warehouse full of bulk groceries and massive hot dogs. There are some things that even the most avid Costco fans would be surprised to learn.

From mind-blowing product prices to hidden Costco membership perks, there’s a lot about the amazing warehouse that most shoppers don’t know. Here are 15 of the most interesting, little-known Costco facts that will make you see the retailer in a new light.

Before Costco became the retail giant it is today, it was called “Price Club.” A former executive at Price Club opened the first warehouse location in 1983 as a separate venture. Ten years later, the two companies merged under the name PriceCostco.

Eventually, Price executives left the company, leaving it up to the rest to adopt the name that reflected their commitment to cost efficiency. Thus, the Costco we know today was born — combining “Cost” and “Company” to emphasize their unbeatable prices.

The smallest Costco in the world is located in Juneau, Alaska. At just 76,696 square feet, this warehouse is a fraction of the size of a standard Costco. 

Due to its remote location, shipments arrive by boat, and the store carries specialized products suited to the Alaskan lifestyle.

On the other end of the spectrum, the largest Costco is in Salt Lake City, Utah. Spanning 235,000 square feet, this massive store offers everything from bulk groceries to industrial-sized appliances. If you’ve ever felt like your local Costco was big, just imagine trying to find your groceries in this massive warehouse.

If you don’t want to pay for a membership, you can still shop at Costco by using a Costco Shop Card gift card. Non-members can use these cards to make purchases in-store and online, allowing you access to Costco’s low prices without an annual fee. All you need is a friend or family member with a current Costco membership to supply you with it.

If you're a cheese lover, you might be shocked to learn that Costco sells a full 72-pound wheel of Parmigiano Reggiano. This premium cheese, aged for 24 months, costs around $950 and is imported straight from Italy.

The store’s Kirkland Signature wines are sourced from top wineries and sold at a fraction of the price of comparable brands. Costco is also one of the largest wine retailers in the country — only recently surpassed by Total Wine & More.

Those delicious free samples aren’t just a nice perk — they’re a calculated sales tactic. Studies have shown that shoppers are more likely to buy a product after trying a sample. In fact, Costco’s sample program has led to a major boost in sales for featured items.

According to The Atlantic, the frozen pizza samples once helped boost sales by 600%.

For shoppers who truly wanted luxury, Costco once offered a private jet service through Wheels Up. Members were able to book private flights at exclusive rates, proving that the warehouse giant caters to more than just budget-conscious shoppers.

Certain Costco locations offer exclusive shopping hours for business members. Costco Business Centers open earlier than a Costco warehouse to allow business owners to stock up on inventory without the usual crowds. 

However, these locations are open to any Costco member, so you can take advantage of the deals, too.

Despite inflation and rising costs, Costco has kept the price of its hot dog and soda combo at $1.50 since 1985. The company’s co-founder even once joked that if anyone tried to raise the price, he would “kill them.”

Costco’s legendary return policy allows members to return nearly anything with no questions asked.

Some exceptions apply, like electronics (which have a 90-day return window), but overall, their policy is one of the most generous in retail. They’ve even been known to accept returns on dead Christmas trees after the holidays.

Costco’s Kirkland Signature brand accounted for more than 25% of the retailer’s total sales in 2021. 

Many Kirkland products are made by major brands like Duracell, Starbucks, and even big-name whiskey distilleries. But at Costco, you can get them for a fraction of the price.

Costco’s best-selling item is not their $1.50 hot dogs or their $5 rotisserie chickens — it’s their Kirkland Signature toilet paper. The warehouse sells over $400 million worth of toilet paper each year. That comes out to over a billion rolls annually.

If you’re a fan of top-shelf liquor, you might be surprised to learn that Kirkland Signature spirits are rumored to come from the same distilleries as premium brands like Grey Goose.

Despite Costco’s massive presence across the country, three states are still missing out on their own warehouse. While the company operates over 600 locations in the U.S., West Virginia, Rhode Island, and Wyoming have yet to open one.

Another fun fact? In 2024, Costco had almost 137 million members. Everyone is trying to save money, whether that be through Costco’s amazing deals or finding the best cash back credit cards to use while shopping.

And if you’re looking to save money on essentials, consider buying Kirkland Signature products, which often come from the same manufacturers as name-brand items but at a fraction of the price.