Table of Contents Show
- Table of contents
- What is Costco?
- Brief History
- Costco Mission Statement
- Costco Code of Ethics
- Costco Reviews
Considering membership with Costco? Read this article on Costco reviews from other users to enable you to make a sound decision.
Costco is one of the top companies, not just in the retail industry but generally. This can be attributed to Costco’s mission statement, which has guided them for over thirty-five years and placed them on top of the chart of most ethical corporations.
The company has experienced steady growth, reflected in its position as the second-largest retail store globally. This is also a result of Costco’s mission statement and code of ethics. This article will highlight Costco Reviews from users and Costco’s mission statement, which accounts for its steady growth and success.
Table of contents
What is Costco?
Costco, otherwise known as Costco Wholesale Corporation, is an American retail store, or rather a chain of stores, that operates warehouse clubs. Warehouse clubs are a type of store in which merchandise in large quantities is sold at discounted prices to members who pay a yearly membership fee. Many Costco stores also operate subsidiary businesses like gasoline stations and pharmacies. Their company is headquartered in Issaquah, Washington.
Warehouse club retailing was pioneered by Sol Price in 1976 when he opened Price Club in a converted airplane hangar in San Diego. Initially, this club warehouse only offered its services to small businesses. However, the executive vice president of merchandising, distribution, and marketing, Jim Sinegal, contributed immensely to the success of Price club with some marketing strategies that transformed the business.
Jim later went on to co-found Costco with Jeff Brotman in 1983. Costco’s first location was in Seattle, making it the first company to experience growth from zero to three billion dollars in six years. Costco and Price Club merged to become Price/Costco in 1993. The company’s corporate name was changed to Costco Companies, Inc., in 1997 and finally to Costco Wholesale Corporation, in 1999. Stores were opened in the United States, Australia, Canada, and Mexico in the early 21st century. The company has gone on to open over 800 stores in different countries as of today.
Costco Mission Statement
Costco’s mission is to provide its members with quality goods and services at the lowest possible price. The company focuses on the savings members receive from shopping with them and the quality of the merchandise. The following are the outlined characteristics of Costco’s mission statement:
- Quality goods and services
- Discounted prices
- Influencing their niche
Quality Goods and Services
The quality of Costco’s merchandise is one of its selling points, this can be traced back to 1983 when the company was founded. This is one of the things that gives it an edge over its competitors, and this is reflected in its return policy, as members can return goods when they are not satisfied.
Discounted price is another of Costco’s hot-selling prices, and it has built a large base of loyal members through this factor. It not only provides discounted prices for its members but also influences the general pricing of the market through its highly discounted prices.
Influencing their Niche
Costco aims to become the leader and influencer in the retailing sector. And it has been able to achieve this exemplary customer service. Another means through which it has achieved this is through its community development service. It has gone beyond the norms of retail stores through its sustainable commitment and contribution to society by developing and protecting the community.
Costco Code of Ethics
In Costco’s reviews, their code of ethics has set them apart from other retail stores worldwide. The following is Costco’s code of ethics:
- Obeying the law
- Taking care of their members
- Taking care of their employees
- Respecting their supplier
Through these four codes, they will achieve their ultimate goal, which is
- To reward their shareholders
Obeying the Law
The first ethic adopted by Costco is obeying the law and conducting their business in total compliance with laws guiding every community they do business. Some of Costco’s pledges in this regard are:
- Complying with all laws and legal requirements
- Respecting all public officials and their positions
- Following safety and security standards for all their merchandise
- Conducting businesses in and with foreign countries in a manner that is proper according to the law
- Not engaging in any corrupt practices like bribery, among others.
- Ensuring accuracy and understandability in reports to government agencies and other public communication.
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Taking Care of their Members
Costco believes its members are important, as they are the key to its success. If the members do not show up, the business cannot survive. Their members’ loyalty to the company is shown in the fee they pay for membership. While not violating the trust their members have in them and ensuring that they keep getting the trust; here are some of their pledges to ensure this:
- Ensuring warm welcome of members and customers
- Provision of quality products at the best market prices
- Provision of safe and hygienic good items per good safety standards
- Provision of authentic products
- Provision of 100% satisfactory guarantee on every merchandise
- Contributing to the community through community development services and volunteering
Taking Care of Employees
It is widely known that employees are the greatest assets of any organization. Costco did not neglect this, as regard is given to the employees. This is reflected in their reward system, which cannot be rivaled by any of their competitors in the industry. Some of their pledges in this regard include:
- A healthy work environment
- Access to the high level of management for issue resolving
- Harassment and discrimination-free work environment
- Opportunity for growth and career advancement
- High pay as compared to competitors
Respecting their Suppliers
Costco’s mission statement guides it in its business endeavors, and respecting its suppliers is another of its ethics that enables it to achieve its mission statement. To be in business, Costco needs partners to supply merchandise. It is, therefore, important for them to treat their partners right. Hence, Costco ensures they treat their suppliers right through:
- Honoring their commitments to their partners
- Protecting their suppliers’ property in Costco’s care
- Treating suppliers and their representatives well
- Not accepting gratuity from any supplier
Costco is a highly ethical company that ensures its employees and management lawfully conduct themselves. Other ethics govern the company, such as employees not starting a business or working with competitors. The ultimate goal of Costco putting these ethics in place is to ensure order.
Costco’s shares are traded on the NASDAQ stock market, and shareholders are joint owners, hence business partners. Costco treats the shareholders right by:
- Ensuring they get a good return on their investment
- Ensuring an upward trend in the value of their shares
- Ensuring that the business is operated in a way that shareholders and employees are rewarded for their efforts
Costco is not one corporation that puts rules in place but doesn’t follow through. Appropriate disciplinary actions are taken for officers or employees of companies that violate the code of ethics. Also, employees are to report violations or suspected violations of the code of ethics to the executive vice president, who will take the necessary actions.
On SiteJabber, Costco Reviews has a rating of 3.53 out of 5 stars from almost 1,500 reviews from customers. This indicates a satisfactory experience for users. Some of the most mentioned benefits include their return policy and amazing shopping experience. This explains its place as second among grocery stores. Below are some Costco reviews from customers.
John has been a member for 5 years and counting, and he doesn’t regret it. He called it ‘his Costco’ and attested to getting value for his money.
Jeffrey is another fellow that was pleased with the company and gave a Costco review. He gave the company five stars for service, value, shipping, and quality. This shows the level of satisfaction he got from his business with Costco.
Jennifer’s Costco review also supports their excellent service. She says she loves Costco and prefers it over Amazon. Now that should count for something.
There are also some negative Costco reviews, and one such is from Christine, who says they have poor customer service and that making orders online is difficult.
James’ is another negative Costco review; he talked about late delivery without explanation. He further stated that he would cancel his order and request a refund for his ordered goods and membership.
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Costco’s mission statement helped the founders build a highly ethical corporation. Although the reviews of Costco on Sitejabber show that most users are pleased with the company, several users talked about their poor delivery during and after Covid, ineffective online services, and terrible customer service. As the company’s core values include taking care of its members, I believe these are some things the company should work on.