Costco Annual Report Essay

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Annual Report Project Linda G. Keenon Professor Ufuoma Omosebi Accounting I - ACC100035VA016 June 2, 2013 Introduction I selected the Costco Wholesale Corporation, for my Week 8 Annual Report assignment. Costco Warehouse Corporation began operation in Seattle, Washington in October 1993. The company merged with the Price Company, which had pioneered the membership warehouse concept, to form Price/Costco, Inc. On August 30, 1999, the company reincorporated from Delaware to Washington changing its name to Costco Wholesale Corporation. As of December 2012, the company operates a chain of 622 warehouses in 41 states and Puerto Rico (448), Canada (85), Mexico (32), the United Kingdom (23), Japan (13), Korea (9), Taiwan (9) and Australia (3) locations generating over $3 billion in operating cash flow. Costco is one of the largest retailers in the United States and seventh largest in the world, with total income of $1,709 million. In this paper, I will review the annual report for 2012. I will provide answers to the following questions: * Identify and explain the main sections of the Costco’s 2012 annual report. * Discuss the key factors that influence Costco‘s financial performance during Fiscal Year 2012. * Discuss the primary assets held by Costco. * Explain how…show more content…
The key factor that influenced Costco’s financial performance during 2012 is customer loyalty. The number of Costco members increased by 11%, even after membership fees increased. Although there were tough economic conditions in 2012, Costco managed to grow the business by 17 locations in 2012. Increasing sales is also critical to Costco’s success. The number of warehouses that exceeded $200 million in annual sales volume rose from 93 locations in 2011 to 134 locations in 2012: and eight of those warehouses exceeded $300 million in annual sales. Discuss the primary assets held by

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