Mayor Presentation

8/7/2019 Mayor Presentation

1/33

1650 E. Tucson Marketplace Blvd., 857131650 E. Tucson Marketplace Blvd., 85713


2/33

Who is Costco?Who is Costco?


3/33

HISTORYHISTORY

Sol Price started The Price Club in San Diego in 1976Sol Price started The Price Club in San Diego in 1976

in a Hughes aircraft hanger on Morena Blvd.in a Hughes aircraft hanger on Morena Blvd.

The two companies merged in 1994The two companies merged in 1994


4/33

todaytoday

Membership only warehouse clubMembership only warehouse club

Today we are an international retailer with 583 stores in 9 countriesToday we are an international retailer with 583 stores in 9 countries

426 United States426 United States

80 Canada80 Canada

32 Mexico32 Mexico

18 England18 England

3 Scotland3 Scotland

7 South Korea7 South Korea

6 Taiwan6 Taiwan

9 Japan9 Japan

1 Australia1 Australia


5/33

statsstats

62M card holders62M card holders 87% renewal rate87% renewal rate

$130M average sales per location$130M average sales per location

Tucson III ~ $100M for 1Tucson III ~ $100M for 1--2 years2 years

Top 3 US retailerTop 3 US retailer

Top 7 retailer in the worldTop 7 retailer in the world

Fortune 50 companyFortune 50 company -- #27#27

Retailer of the Year, Best Company to WorkFor,Retailer of the Year, Best Company to WorkFor,

Most Admired CompanyMost Admired Company


6/33

Stats (contd)Stats (contd)

Highest $/sq. ft. in retailHighest $/sq. ft. in retail

Highest employee productivity in retailHighest employee productivity in retail

Generous benefits (48% of hourly wage)Generous benefits (48% of hourly wage)

$11 + $5.25 = $16.25$11 + $5.25 = $16.25

Hourly wages from $11 to $22Hourly wages from $11 to $22


7/33

CommunityCommunity

involvementinvolvement

Childrens Miracle Network sponsorChildrens Miracle Network sponsor -- MayMay

$100K LY to TMC Childrens CMN Hospital by$100K LY to TMC Childrens CMN Hospital byemployees, members, and Costcoemployees, members, and Costco

United WayUnited Way community safety net $30kcommunity safety net $30k -- OctoberOctober

Fresh Start Backpack ProgramFresh Start Backpack Program

600 backpacks with supplies to underprivileged kids600 backpacks with supplies to underprivileged kids

Mt. Lemmon fire contributions to fire fightersMt. Lemmon fire contributions to fire fighterswater/Gatorade palletswater/Gatorade pallets

Shooting victims volunteersShooting victims volunteers


8/33

employmentemployment

Hire 100 people locally over next 2 yearsHire 100 people locally over next 2 years

60 people so far for new location60 people so far for new location

TaxesTaxes -- $100M / yr. volume$100M / yr. volume

Win for Costco, win for communityWin for Costco, win for community


9/33

membershipmembership

GoldstarGoldstar $50$50

BusinessBusiness $50$50 resaleresale

ExecutiveExecutive $100$100 2% back to $5002% back to $500

330,000 cardholders in Southern Arizona330,000 cardholders in Southern Arizona


10/33

merchandisemerchandise

Sell merchandise at substantial savings overSell merchandise at substantial savings over

competitioncompetition

10%10% -- 40% staple items40% staple items

High turnover is keyHigh turnover is key 13x /yr.13x /yr.

Merchandise sells before invoice is paidMerchandise sells before invoice is paid

25% private label25% private label 20% value to national brands20% value to national brands Kirkland SignatureKirkland Signature


11/33

Sales breakdownSales breakdown

15%15% Mexican nationalsMexican nationals

40%40% BusinessesBusinesses

60%60% GoldstarGoldstar


12/33


13/33

Food courtFood court

94M hot dog and soda combos sold94M hot dog and soda combos sold

worldwide in FY10 (E)worldwide in FY10 (E)


14/33

Fantastic employeesFantastic employees

150,000 employees worldwide150,000 employees worldwide

87% benefits eligible (99% enrolled)87% benefits eligible (99% enrolled)

Highly compensatedHighly compensated $19.67 average hourly wage$19.67 average hourly wage

Low turnoverLow turnover

10% turn over10% turn over

5% after 1 year5% after 1 year


15/33

Costco in the militaryCostco in the military

366 employees currently on military leave366 employees currently on military leave

Supplemental pay benefitSupplemental pay benefit

Healthcare benefits continue on leaveHealthcare benefits continue on leave

Quarterly care packagesQuarterly care packages


16/33

Our peopleOur people

Our best ambassadorsOur best ambassadors

Good jobs / wages / benefitsGood jobs / wages / benefits

CareersCareers not just jobsnot just jobs

Promote from withinPromote from within

Everyone is includedEveryone is included


17/33

Consumer reportsConsumer reportsJuly 2010July 2010


18/33


19/33

Site photosSite photos


20/33

Site photosSite photos


21/33

triviatrivia


22/33

Meat Department FY10

Costco U.S. sold 1.1 million fresh turkeysduring the holidays -

(13 days Thanksgiving, 13 days Christmas)

How many pounds per day? A. 722,153 lbsB. 846,153 lbs

C. 989,153 lbs

Answer: B

B. 846,153 lbs


23/33


Costco U.S. sells how many steaks

Per Business Day? A. 756,334B. 500,279

C. 276,565

Answer: B

B. 500,279


24/33


How many tons of Ribeye Steaks do we sellper business day in Costco U.S.?

A. 30 tons

B. 15 tonsC. 20 tons

Answer: A

A. 30 tons


25/33

Bakery DepartmentF

Y10Costco U.S. goes through _____

truckloads of canned Pumpkin the 3 days prior

to Thanksgiving (1.2M pies sold in 3 days)

A. 48

B. 25

C. 55Answer: A

A. 48


26/33

Bakery Department FY10

Baked in FY10

145M Bagels141M Muffins

112M Croissants

243M DinnerRolls


27/33

Bakery DepartmentF

Y10How many eggs were cracked for our

bakery needs this year?

A. 101 Million

B. 750 Thousand

C. 136 MillionAnswer: C

C. 136 Million


28/33

Service Deli

FY10

Costco U.S. has sold how many rotisseriechickens since beginning rotisserie in 1995?

A. 248 Million

B. 350 MillionC. 1 GazillionAnswer: BB. 350 Million


29/33

Service Deli FY10Costco U.S. sells how many tons of shrimp perbusiness day in the Service Deli?

A. 12 tons

B. 15 tons

C. 22 tons

Answer: B

B. 15 tons


30/33

Food Court FY10

Costco U.S. sells how many hot dogs per

business day?A. 10 Million

B. 143,500

C. 195,500Answer: C

94MHot Dogs sold Globally in FY10

C. 195,500


31/33

Produce FY10Costco U.S. sells how many tons ofbananas per day?

A. 301 tons

B. 272 tons

C. 195 tonsAnswer: B

B. 272 tons


32/33

Produce FY10

Costco U.S. berry category sales forFY10?(Strawberries, Blueberries, Raspberries, Blackberries)

A. $435M

B. $356M

C. $248MAnswer: A

Over 74M units sold

A. $435M


33/33

Thank youThank you

Mayor Presentation

Documents

Transcript of Mayor Presentation