Costco $COST Wholesale Corporation's COST warehouse expansion strategy remains a key part of its long-term growth plan. The company aims to open 28 new warehouses in fiscal 2026 and targets more than 30 openings annually in the coming years. This shows a strong commitment to ongoing physical expansion, emphasizing the company’s reliance on its warehouse model as the main driver of member engagement and sales growth.
In the second quarter of fiscal 2026, Costco opened four warehouses, including a U.S. relocation, one new U.S. location and two Canadian business centers, increasing its global total to 924 warehouses. Costco plans to open 18 more locations this fiscal year, reaching a total of 942 warehouses by year-end. Of these 18 locations, about 15 will be in the United States, one in Canada and two in international markets.
Importantly, the company is evolving its real estate playbook. To support growth, the company expects to spend roughly $6.5 billion on capital expenditures this year. These investments are specifically earmarked for building new warehouses, expanding depots and remodeling existing warehouses to drive further traffic.
Beyond expanding its footprint, new warehouses are designed to enhance productivity and relieve pressure on high-volume locations. This expansion also aims to boost shopping frequency, which management sees as a key driver in mature markets.