Is Costco's International Expansion Going Well?
Mostly yes, but the pace is slower than the headline. In fiscal 2026 Costco's Other International segment grew net sales 12%, faster than the US and Canada at 10% each, and the company opened 28 warehouses (25 net) and plans up to 33 more in fiscal 2027. But only two of the 25 net new warehouses were in the Other International segment, its comparable sales were 6% excluding gasoline and currency (against 7% in the US and Canada), and its renewal rate is lower at 89.8% worldwide against 92.3% in the US and Canada. This is analysis, not a recommendation.
Where does Costco operate outside the US?
| Country or region | Warehouses at fiscal year-end 2026 |
|---|---|
| United States and Puerto Rico | 647 |
| Canada | 115 |
| Mexico | 43 |
| Japan | 37 |
| United Kingdom | 29 |
| South Korea | 20 |
| Australia | 15 |
| Taiwan | 14 |
| China | 7 |
| Spain | 5 |
| France | 3 |
| Sweden | 2 |
| Iceland and New Zealand | 1 each |
| Total | 939 |
Costco's largest markets outside the US and Canada at August 30, 2026, from its fiscal 2026 10-K. The Other International segment totals 177 warehouses, about 19% of the 939.
Costco's 10-K counts 292 warehouses outside the US, 31% of the total, including Canada's 115.
How fast are international sales growing?
| Measure (fiscal 2026) | United States | Canada | Other International |
|---|---|---|---|
| Net sales growth | 10% | 10% | 12% |
| Net sales growth, fiscal 2025 | 9% | 6% | 8% |
| Comparable sales, as reported | 8% | 8% | 10% |
| Comparable sales excluding gasoline and currency | 7% | 7% | 6% |
| Comparable sales excluding gasoline and currency, fiscal 2025 | 7% | 8% | 8% |
The reported international numbers look strongest, but they are lifted by currency and gasoline prices. Strip those out and Other International comparable sales slowed from 8% to 6%, the weakest of the three regions, and the third-quarter figure was 5.9% against 6.8% in the US. The company's own table shows the reported 10% comes mostly from the weaker US dollar.
Is Costco opening warehouses abroad?
| Item | Figure | Note |
|---|---|---|
| Warehouses opened in fiscal 2026 | 28, including three relocations (25 net) | 18 net in the US, 5 in Canada, 2 in Other International |
| Plan for fiscal 2027 | Up to 33, including five relocations | Longer-term target of about 30 net new locations a year |
| Average sales per warehouse | $292 million, up from $272 million | Warehouses opened in 2026 averaged $187 million in their first year, annualised |
| Capital spending | $6.4 billion in fiscal 2026, about $7.5 billion planned for fiscal 2027 | Mexico is a stated focus, with a 43rd warehouse opened in Escobedo |
The expansion is real but mostly domestic by count. Costco says square footage growth is generally higher in international markets because the base is smaller, and the company names strong potential in China, Korea and Japan, more openings in Taiwan and room to grow in Spain and France. Executive membership has launched in China, and same-day delivery has reached Spain and France.
How healthy is the international membership base?
| Measure | Figure |
|---|---|
| Paid members, fiscal 2026 | 84.1 million, up from 81.0 million |
| Total cardholders | 150.4 million |
| Renewal rate, US and Canada | 92.3% |
| Renewal rate, worldwide | 89.8% |
| Membership fee income | $5.91 billion, up 11% |
| Executive members | 42.3 million, about 75% of net sales |
The 10-K says the worldwide renewal rate is adversely affected by membership growth in certain international markets, which is how new-market sign-ups show up: many new members have not yet renewed. A rate below the US and Canada is normal while warehouses are young, but it is the number to watch as new markets mature.
What are the risks abroad?
- Currency: exchange rates that are unfavourable can reduce reported results, and some purchases are paid in a currency other than the local one.
- Local competition: some markets have multiple competing warehouse clubs, while others have little or none.
- Regulation and politics: trade rules, tariffs and reporting obligations add cost and complexity. Costco paid about $500 million in tariffs that the Supreme Court later ruled unlawful and has begun receiving refunds, most of which it plans to invest in lower prices.
- Slower comps: international comparable sales excluding currency and gas have slowed for two years.
How does Costco look on this site's checks?
From the weekly data of October 23, 2026, on the Costco stock page:
| Measure | COST | What it tells you |
|---|---|---|
| Price | $1003.32 | About 8% below its 52-week high of $1,096.50 |
| Trailing / forward P/E | 48.7 / 39.7 | A premium multiple for steady growth |
| Revenue growth / net margin | +10.1% / 3.0% | A thin margin, so membership fees matter |
| Debt to equity | 0.17 | Low debt |
| Value filters passed | 3 of 8 | Buffett-style 5 of 8 and Lynch-style 2 of 5 |
| Margin of safety (DCF) | About -176% | A model that fades growth from 8% cannot justify this price |
At about 49 times earnings, and with this site's reverse DCF needing free cash flow per share to grow about 35% a year before fading, the market already prices Costco as a long-term winner, so international growth that merely continues is expected and a slowdown would show in the multiple. What is a good P/E ratio explains how to judge a premium multiple, and the See's Candies test looks at how much capital a business needs to grow.
Sources
- Costco fiscal 2026 annual report on Form 10-K (SEC, year ended August 30, 2026): warehouses, segment growth, comparable sales, membership
- Zacks via Yahoo Finance: Can international markets become Costco's biggest driver? (August 31, 2026): third-quarter comps and market plans
- Mexico Business News: Costco sales rise 11.2% as Mexico expansion continues (October 8, 2026): fiscal 2027 plans
- Costco on this site: price and ratios, October 23, 2026
The segment note of the 10-K, with dollar sales by region, could not be read, so growth rates are used instead. Capital-spending and opening plans for fiscal 2027 come from a press report. This is educational content, not investment advice.
Costco international expansion FAQ
How many Costco warehouses are outside the US?
292 of 939 at the end of fiscal 2026, 31% of the total, including 115 in Canada, 43 in Mexico, 37 in Japan and 29 in the UK.
Is Costco's international business growing faster than the US?
On net sales yes: 12% against 10% in fiscal 2026. On comparable sales excluding gasoline and currency it is slower, at 6% against 7%.
Which countries is Costco expanding in?
It names strong potential in China, Korea and Japan, more openings in Taiwan, and room to grow in Spain and France, and it has a stated focus on Mexico.
How many warehouses will Costco open in fiscal 2027?
Up to 33, including five relocations, with a longer-term aim of about 30 net new locations a year.
Is Costco's China business working?
It has seven warehouses and has launched Executive membership there, but the filings read did not give China-specific results.