Costco 1998 Annual Report Download - page 8

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MERRILL CORPORATION NETWORK COMPOSITION SYSTEM LSTARKE // 9-DEC-98 14:28 DISK004:[98SEA7.98SEA2097]DJ2097A.;13
IMAGES:[PAGER.PSTYLES]MRLL.BST;4 pag$fmt:mrll.fmt Free: 320DM/ 0D Foot: 0D/ 0D VJ R Seq: 1 Clr: 0
COSTCO COMPANIES A/R (Y/E 8-31-98) Proj: P1826SEA98 Job: 98SEA2097 File: DJ2097A.;13
Merrill/Seattle (206) 623-5606 Page Dim: 8.250N X 10.750NCopy Dim: 38. X 54.3
NUMBER OF WAREHOUSES
Own Land and Lease Land and/or
Building Building Total
UNITED STATES .................................. 166 45 211
CANADA ........................................ 47 9 56
UNITED KINGDOM ................................ 7 - 7
KOREA ......................................... - 3 3
TAIWAN ......................................... - 1 1
Total ........................................ 220 58 278
The following schedule shows warehouse openings (net of warehouse closings) by region for the past
five fiscal years and expected openings (net of closings) through December 31, 1998:
Total
Other Warehouses
Openings by Fiscal Year United States Canada International Total in Operation
1993 and prior ........................ 170 30 - 200 200
1994 ............................... 12 7 2 21 221
1995 ............................... 9 8 2 19 240
1996 ............................... 1 10 1 12 252
1997 ............................... 8 (1) 2 9 261
1998 ............................... 11 2 4 17 278
1999 (through 12/31/98) ................. 6 1 - 7 285
Total ............................ 217 57 11(a) 285
(a) As of August 30, 1998, the Company operated (through a 50%-owned joint venture) 14 warehouses in
Mexico (one opened in fiscal 1992, two opened in fiscal 1993, five opened in fiscal 1994, five opened in
fiscal 1995, and one opened in fiscal 1998). Two additional warehouses were opened prior to
December 31, 1998. These warehouses are not included in the number of warehouses open in any
period because the joint venture is accounted for on the equity basis and therefore their operations
are not consolidated in the Company’s financial statements.
In addition to its broad range of high quality, nationally-branded and private label merchandise, the
Company has enhanced the warehouse club concept to include fresh products (meat, bakery, deli and
produce) as well as a number of ancillary businesses, including the following as of December 31, 1998:
ANCILLARY BUSINESSES
Other
United States Canada International Total
Pharmacy ...................................... 198 18 - 216
Optical Dispensing Centers ......................... 203 48 8 259
One-Hour Photo ................................. 208 57 11 276
Food Court and Hot Dog Stands ..................... 215 57 11 283
Hearing Aid Centers .............................. 59 6 - 65
Copy Centers ................................... 9 - 2 11
Print Shops .................................... 2 - 1 3
Gas Stations .................................... 38 2 - 40
6
9 C Cs: 63763