Does Costco support Israel? The company’s neutral stance and global operations

Editorial Team

Credit: shopisrael.com

There aren’t any Costco warehouses or direct company operations in Israel at the moment. Israel is not a member of its worldwide network, which also includes nations like Canada, Mexico, the United Kingdom, Japan, South Korea, and many more. 

Does Costco support Israel? Even though Costco receives goods from all over the world, and the stores have kosher-certified products, some of which can be made in or by Israeli-owned companies, the company does not put a lot of stress on the relations it has with Israel in terms of suppliers. It does not take any side and instead maintains a stance of political neutrality, yet focuses on sustainability, community support, and value.

History of Costco

Costco Wholesale Corporation, which operates under the name Costco, is a multinational corporation based in America with a chain of large-box warehouse club retail stores, which are members-only. In 1983, the business established its first warehouse, the chain’s name for its retail locations, in Seattle. However, Costco’s business history began in 1976 with the founding of Price Club, a rival company, in San Diego, California, through mergers. Costco started off as a wholesale company to sign up businesses as members. Later, it started to sign up individual customers and sell goods for them, including its own private label line.

Credit: historylink.org

Costco quietly shut off its year-round book areas in its facilities in Hawaii and Alaska in 2022. A number of publishing executives issued a warning in June 2024 that Costco intended to implement the same policy across all 600 of its warehouses in the continental United States in January 2025. Put another way, books would only emerge as a whole section during the holiday shopping season in the final four months of each year, and for the remaining eight months of the year, they would simply become another rotating inventory item. For a publishing business that was already dealing with stagnant book sales, this was quite concerning. Costco agreed in November 2024 to temporarily maintain year-round book areas in 100 of its 600 warehouses on the US mainland. 

Costco’s unique membership model

After Price turned down Walmart’s offer to combine Price Club with its warehouse store brand, Sam’s Club, the two companies decided to combine their operations in 1993. The merger was more logical for both Costco and Price Club because of their similar business models and sizes. The merged business was renamed PriceCostco, and memberships were made universal, allowing Price Club members to shop at Costco and vice versa. With 206 stores, PriceCostco generated $16 billion in sales annually. Executives from both businesses at first headed PriceCostco, but in 1994, the Prices departed to start PriceSmart, a chain of warehouse clubs in the Caribbean and Central America that had nothing to do with the modern Costco.

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In 1996, Costco relocated its corporate office from Kirkland to Issaquah. In order to enable buyers to examine sales and inventory, it decided to construct a new headquarters campus, adjacent to a warehouse store. The company had initially intended to relocate to Redmond, another Eastside city, by December 1993, but they had to change their plans due to road construction delays close to the warehouse location. In late 1996, the 10.7-acre (4.3-hectare) site that had served as Kirkland’s headquarters was sold. In late 1996, the firm tested converting stores in the Southwestern United States to the Costco name.

Supply chain and warehousing strategy

In March 2005, the first Costco warehouse in Seattle was replaced by a new structure on a nearby lot to the north; the firm managed to get the same address for the new structure, which was situated on property purchased from Seattle Public Schools. The company’s first car wash, parking lot, and gas station were constructed in 2006 after the original facility was dismantled. Costco was the third-biggest retailer in the US in 2014. In the same year, Costco declared its intention to use Alibaba Group to launch an internet store in China. In 2016, Costco announced that it would open 29 new facilities, the most in a single year since 2007. 

Since 1989, Span Construction, under the direction of King Husein, has built practically all of Costco’s structures.

On August 27, 2019, Costco launched its first warehouse in Shanghai, China. The store had to close after just a few hours due to the large number of clients it drew. Due to the COVID-19 pandemic’s economic effects, the first Costco in New Zealand was delayed from opening in mid-August to September 2022 in West Auckland.

Sam’s Club, a Walmart subsidiary, and BJ’s Wholesale Club are Costco’s primary rivals in the US that run membership warehouses. 316,000 full-time and part-time workers are employed by Costco worldwide. In 2017, there were 90.3 million members of Costco. 105.5 million people were members of Costco in 2020. The firm had 111.6 million members in 2021. Costco had 129.5 million members as of November 2023. 

Product range and private label brands

The number of products that Costco will offer in 2025 will be vast in the form of groceries, household items, fresh foods, and so on. There is also a high demand for seasonal and high-quality products, and the fresh food products, which include meat, produce, dairy, and baked goods, remain very popular. The grocery segment is robust with pantry needs, organic options, snacks, and specialty health products. The most impressive product from Costco is the Kirkland Signature, their own brand of high-quality products in various categories such as food and beverages, clothing, household cleaning agents, and dietary supplements, but most importantly, the products are said to be of outstanding value compared to their national counterparts.

Besides food, Costco’s product portfolio includes jewelry, clothing, electronics, large appliances, personal care products, and home products. There are also seasonal and specialty items; fresh-baked goods and snacks of limited editions have a lot of popularity. Due to this broad and ever-evolving product mix, Costco can maintain competitive pricing and high quality of its products as well as meet the needs of its diverse clientele.

Shopping tips and savings at Costco

The process of shopping in Costco can be a satisfying experience when the members know how to make the best out of what they buy and navigate their way through the warehouse. One of the pieces of advice that may be useful is to use the so-called treasure hunt strategy of Costco, which includes high-quality products that are sold at very high prices during seasonal and limited-time sales. To prevent the rush and access the newest inventory, members are shown to shop at the beginning of the week or at non-peak hours. Furthermore, you can save further on food, electronics, and household items by regularly visiting the coupon book and online activities of Costco. 

Health, beauty, and wellness products

Costco’s product selection has grown dramatically over time. Originally emphasizing bulk, packaged items that could be readily exhibited in-store by taking the stretch wrap off a pallet, Costco’s inventory now consists of a wide range of products in all sizes and forms. [Reference required] These include everything from apparel, art, literature, and coffins to computer software, fine wine, furniture, electronics, hot tubs, home appliances, jewelry, and a variety of perishable foods like dairy, baked goods, flowers, produce, meat, and seafood. Other products have also made their way into Costco’s product portfolio, including vacuum cleaners, tires, and solar panels.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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