Issaquah, Washington-based Costco Wholesale Corporation (COST) is one of the world’s largest membership-based warehouse retailers. The company has a market cap of $414.5 billion and operates large, no-frills warehouses and e-commerce sites, offering groceries, fresh food, electronics, appliances, apparel, furniture, jewelry, tires and other merchandise, alongside gasoline, pharmacy, optical and food-court services.
Companies with a market cap of $200 billion or more are typically referred to as "mega-cap stocks." Its biggest competitive advantage is its membership-based, low-price business model. Its scale allows it to buy merchandise in huge volumes and operate with a limited SKU assortment, efficient distribution, and relatively low overhead, enabling it to offer consistently low prices while maintaining strong customer loyalty.
