Costco CEO confirms shock U-turn on 35 new stores in 2026

Costco told investors on its earnings call that it has trimmed planned new-store openings for fiscal 2026 to 28 from the previously announced 35 due to delays in international builds in Spain, though CEO Ron Vachris called the seven-store reduction temporary and reiterated an expectation to return to roughly 30 openings per year starting in 2027. Management said at least 27 new stores for 2025 will be operational by year-end, four stores were added in the past quarter, and the global store count now stands at 921, with five relocations and ongoing remodels planned for 2026. The company is also prioritizing larger-format sites with expanded parking and gas stations and rolling out enhanced pre-scan checkout technology that has improved speed by about 20%, measures that should lift throughput and sales per warehouse even as near-term openings are delayed.

Analysis

Costco reduced planned fiscal-2026 store openings to 28 from the 35 announced in September after construction delays in international builds in Spain, with CEO Ron Vachris characterizing the seven-store shortfall as temporary and reiterating an expectation to return to roughly 30 openings per year beginning in 2027. Management reported at least 27 new stores for 2025 will be operational by year-end, four stores were added in the past quarter, and the global store count now stands at 921, with five relocations and ongoing remodels planned for 2026. The company is prioritizing larger-format sites with expanded parking and gas stations and a mix of infill and new-market locations, indicating a shift toward higher-capex, higher-throughput warehouses. Operationally, rollout of enhanced pre-scan checkout technology is delivering up to ~20% speed improvements and management cited holiday traffic increases of about 24%, while a policy granting Executive members early hours has generated some Gold Star member complaints that could affect retention. The near-term impact is an execution risk around international construction timing and membership dynamics, but the strategic focus on store productivity and customer throughput supports potential upside to sales per warehouse over the medium term.

Key Decisions for Investors

• Treat the seven-store 2026 reduction as a near-term execution issue rather than a change in long-term growth trajectory and consider maintaining or modestly adding positions on weakness given guidance to resume ~30 openings/year from 2027
• Monitor quarterly updates on Spain and other international builds and the actual pace of openings into 2026 as the primary catalyst for short-term share performance
• Watch capex guidance and metrics tied to store productivity—specifically rollout of pre-scan checkout (cited ~20% speed gain), relocations and larger-format sites—to validate whether higher per-store investment drives higher sales per warehouse
• Track membership trends and churn following the Executive-hours policy as an operational risk that could pressure comps and membership revenue if Gold Star cancellations accelerate