In the year 2025, many businesses are making changes as the new year unfolds, and the well-known warehouse-style retail chain Costco is no exception. Consumers visiting Costco this year will notice some changes in the store.
Costco is one of the most talked-about companies in the retail industry. The name of this store is often associated with good value for money and upcoming new products. Subtle changes within the store and rapid inventory turnover are essential components of Costco’s business model, keeping members engaged and coming back for more.
Indeed, Costco is set to undergo some changes in the new year, and some of these changes may surprise some members. Here are the transformations Costco is welcoming this year.
Starting from this year, hundreds of Costco stores will no longer sell books. With the rise in popularity of e-books and more people turning to online platforms like Amazon to purchase books, physical bookstores are finding it increasingly challenging to survive in the market.
Beginning in January, Costco wholesale retailers will cease stocking books throughout the year. At least in all Costco stores across the United States, book sections, which exist in over five hundred stores, will no longer be present.
In place of year-round book sales, Costco will only sell books during the last four months of the year, corresponding to the holiday shopping season. If the stores with year-round book sections continue to perform well in book sales, Costco may consider reinstating the book section based on sales performance. Conversely, if the book sales in these stores decline, the book section may be discontinued, as reported by Yahoo Finance.
Furthermore, Costco will significantly reduce book inventory, citing high labor costs associated with selling books. Compared to other products, books require additional manpower for handling, with the weekly tasks of stocking new books on Tuesdays and returning unsold books to publishers, leading to a substantial increase in operating costs for this business operation.
On December 17, 2024, Costco Insider announced via an Instagram post that Costco Food Courts would switch to Coca-Cola in early 2025. The change will introduce Coca-Cola, Coke Zero, and Diet Coke, while replacing Starry with Sprite.
The New York Post also reported that loyal fans of Coca-Cola would be delighted to know that Costco Food Courts would replace Pepsi-Cola products with Coca-Cola products in 2025.
Since the 2013 switch from Coca-Cola products to Pepsi-Cola products, Costco aimed to save costs to maintain the $1.50 hot dog and soda combo.
According to The New York Post, it appears that Costco and Coca-Cola have reached an agreement, and the pricing for the hot dog and drink combo will remain the same.
Since the 1980s, Costco has not changed the price of the $1.50 hot dog and soda combo.
By the end of 2024, Costco customers began to notice differences in some food court locations. Some regular tables were replaced with standing-only high tables. This change is gradually being rolled out to more and more stores in 2025. Dining at the food court may no longer be as convenient as before.
Members’ opinions on this change are mixed. Some Reddit users complained that the higher tables are useless if you have young children. However, some customers appreciate this change, stating that standing tables take up less space in the crowded food court and make moving around easier.
Established in 1995, Costco’s private label Kirkland quickly expanded its product categories, ranging from diapers, toilet paper, tires, golf clubs to luggage, wines, and rotisserie chicken.
According to MoneyWise, Kirkland Signature baby diapers are manufactured by Kimberly-Clark, which owns the Huggies brand.
Bloomberg reported on December 9, 2024, that First Quality would replace Kimberly-Clark as the manufacturer of Costco’s private label diapers, with the official transition set to occur in January of this year.
First Quality also produces the Cuties brand of diapers.
Bloomberg reported that in early December last year, Nelson Urdaneta, Chief Financial Officer of Kimberly-Clark, announced the company’s exit from the private label business, enabling them to focus capacity and investment on their own technology and brand to differentiate themselves.
In the latter half of 2024, Costco announced the installation of membership card scanners at store entrances, allowing only members (and their guests) to enter. Costco emphasizes that photo identification may be required for entry.
The scanners started installation in 2024, and Costco promises to install more of these scanners in the coming months, though the timeline for implementation across all stores is yet to be determined.
In 2025, Costco will undergo a change that may not be felt by most members. Costco plans to open six new stores in the United States, with two set to open in March. The new stores will be located as follows:
– Brentwood, California, date to be determined;
– Genesee County, Michigan, date to be determined;
– Highland, California, date to be determined;
– Prosper, Texas, opening on March 14;
– Sharon, Massachusetts, opening on March 1;
– Weatherford, Texas, opening on March 15.
These changes in Costco’s operations reflect the company’s adaptation to evolving consumer trends and retail landscape, aiming to continue providing value and convenience to its members while staying competitive in the market.