Jeff Bezos reveals Costco's secret that few knew in the United States

Costco, widely established in the United States, has achieved its success with a model that combines competitive prices and a membership system that inspired Jeff Bezos to create Amazon Prime. Currently, the chain has five stores in Spain and is preparing to open four more to strengthen its presence. This system, based on annual fees and significant discounts, has transformed the department store and supermarket sector.

A Model That Changed Retail

Jim Sinegal, co-founder of Costco, shared a key to success with Jeff Bezos in 2001 at a meeting in Seattle. "It's all about customer loyalty," Sinegal explained, emphasizing how the membership fee reinforces value for shoppers.

"The membership fee is a one-time hassle, but it is reinforced every time customers walk in and see forty-seven-inch TVs that cost two hundred dollars less." These words from Sinegal explain how this philosophy is what inspired Bezos to create Amazon Prime.

Costco Expands in Spain

In Spain, Costco is present in cities like Las Rozas, Getafe, Sestao, Seville, and Zaragoza. Its expansion will include new centers in Paterna, Torrejón de Ardoz, Málaga, and Siero. Customers value the wide range that covers everything from food to technology and clothing from recognized brands, all in large formats.

Isabel Sogo, a user of the Costco in Seville, highlights the variety: "It has things you don't find in other supermarkets." Jesús García, a customer from Las Rozas, comments that it is "a good supermarket for buying in bulk" with lower prices than other wholesalers. He highlights the presence of Spanish and American brands in food, electronics, gardening, and clothing.

Key to Success: Customer Loyalty

To shop at Costco, it is necessary to be a member and pay an annual subscription that is currently 36.30 euros. This membership offers access to exclusive benefits such as optical services, gas stations, and tire changes. The solid base of members who renew, close to 90%, allows Costco to reduce margins and keep prices low.

Recognition in the Retail Sector

The Spanish Retail Association praises Costco for its unique and profitable model. "There are two types of retailers: those who try to charge more and those who work to charge less. Costco is the brightest of this second group," says Laureano Turienzo, president of the association.

Origins and Expansion

Costco began in 1976 as Price Club in an airplane hangar in San Diego, supplying small businesses, and its first store opened in Seattle in 1983. After merging with Price Club in 1993, they adopted the name Costco Wholesale in 1997, consolidating the membership and low-price model. Thus, Costco, in addition to inspiring figures like Jeff Bezos, implements with its model a new way of understanding the retail world.