Retail expansion and price pressures are shaping the next phase of growth for Costco as the warehouse retailer prepares to increase its presence across the United States. The company is planning dozens of new locations while also explaining how tariff-related refunds have been used to benefit members.
Costco Confirms New Warehouse Expansion Plan for 2027
The announcements come as Costco continues to attract shoppers through its membership model, competitive pricing and expansion into new markets. Costco CEO Ron Vachris has confirmed plans to open 33 warehouses during fiscal year 2027.
Speaking during the company’s fourth-quarter earnings call on September 24, Vachris said five of those locations would be relocations rather than completely new sites. This means the company expects 28 net new warehouse openings.
The plan follows Costco’s previous goal of opening around 30 warehouses per year. The company is already preparing for additional growth in 2026, with 26 locations planned, including at least 10 expected to open during the holiday season.
Vachris said Costco sees further potential in new markets, including locations such as Buffalo, New York, and Lawrence, Kansas. “We continue to see significant opportunities for new warehouses and growth,” Vachris said, adding that the company remains confident in the return generated by new locations.
Tariff Refunds Converted Into Lower Prices for Members
Costco also provided an update on tariff-related refunds discussed earlier this year. The company had previously said it was working to limit the effect of tariffs on customers before a Supreme Court decision affected some of the related measures.
During the earnings call, Vachris confirmed that Costco had received initial tariff refunds and decided to return some of the value to members through price reductions. The savings were applied mainly to products affected by higher costs, including:
| Product Category | Price Actions Mentioned |
|---|---|
| Everyday items | Price reductions |
| Produce | Price reductions |
| Meat | Price reductions |
| Beverages | Price reductions |
| Home furnishings | Price reductions |
| Hardware | Price reductions |
Chief financial officer Gary Millerchip also discussed the company’s approach of reinvesting part of the refunds into lower prices.
Costco Faces Higher Costs Across Several Product Categories
The company’s pricing decisions come as some categories continue to experience rising costs. Meat prices have increased due to several factors, including cattle supply issues, drought conditions and higher production expenses.
According to data cited by NerdWallet, beef and veal prices increased by 9.4% over the past year. For retailers such as Costco, managing these cost increases while maintaining customer value remains an ongoing challenge.
Membership Growth Continues as Costco Expands Services
Costco has also reported continued growth in its higher-level Executive membership programme. The company has highlighted several benefits connected to the membership tier as factors supporting customer interest.
At the same time, Costco is expanding its services beyond traditional warehouse shopping. The retailer is extending its partnership with Uber Eats to reach all US states, giving members another delivery option.
The combination of new warehouses, pricing adjustments and expanded services reflects Costco’s broader plan to grow its customer base while responding to changing retail conditions.
