Costco is virtually immune to AGI disruption -- its value proposition of massive-scale physical retail with unbeatable prices on essential goods is anchored entirely in the physical world that AGI cannot touch.
Costco is the world's third-largest retailer and the largest warehouse club operator, running a chain of membership-only big-box retail stores selling a wide variety of merchandise at low prices in bulk quantities. The company operates approximately 890 warehouses globally, with a curated selection of approximately 3,700 active SKUs (compared to ~30,000+ at a typical supermarket). Costco's business model is uniquely centered on membership fees, which account for nearly all of its operating profit, allowing it to sell merchandise at near-cost. The company also operates a growing e-commerce business, Kirkland Signature private label brand, gas stations, pharmacies, optical centers, and food courts.
Costco serves approximately 130+ million cardholders (73+ million paid memberships), primarily middle-to-upper-income households and small business owners. Members tend to be higher-income, well-educated consumers who buy in bulk. Business members include restaurants, convenience stores, and other small businesses that source products at wholesale prices. Geographic breakdown: approximately 73% US/Canada, 14% other international.
AGI cannot replace the physical warehouse retail experience. Costco's business model is built on massive scale purchasing, physical distribution, and in-store treasure-hunt shopping experiences. Its core competitive advantages -- buying power with suppliers, real estate locations, private label (Kirkland Signature) manufacturing relationships, and the membership model -- are all physical-world moats that AGI cannot disrupt. Costco's limited SKU strategy, low margins, and high volume model is the opposite of an information business. Costco's 130M+ cardholding members are consumers and small businesses buying physical goods: food, household supplies, electronics, clothing, gas, pharmacy, optical, and more. These are fundamental consumption needs that AGI does not affect.