In a move that is sure to impact millions of shoppers, Costco, one of the most successful and popular warehouse retailers in the country, will close all 624 of its locations for 24 hours on Independence Day, while its rival, Sam’s Club, will simply close two hours earlier than usual. This closure marks a significant disruption for Costco customers, as the retailer rakes in approximately $730 million in revenue every day.
Costco’s Financial Power and Popularity
Costco’s revenue for the twelve months ending on May 31 reached an impressive $268.78 billion, marking a nearly 6% increase from the previous year. The company continues to lead the membership-based warehouse club market with a 62% share in 2022, far outpacing Sam’s Club, which held just 31%. Costco’s success is driven by a combination of factors, including affordable food court offerings, bulk product buys, friendly customer service, and its beloved Kirkland Signature products.
While Costco’s revenue continues to soar, its planned shutdown on July 4 reflects its financial ability to take a brief pause without risking major losses.
Sam’s Club’s Response and Holiday Hours
Unlike Costco, which will close for the entire day, Sam’s Club has decided to close only two hours early on Independence Day. This allows the retail giant to maintain business and revenue while still acknowledging the holiday. Sam’s Club has generally opted for shorter closures on other holidays as well, including Memorial Day, Labor Day, and the Fourth of July, when they typically shut their doors earlier than usual.
Sam’s Club also closes on major holidays such as New Year’s Day, Easter Sunday, Thanksgiving Day, and Christmas Day, but it avoids the full-day closures that Costco often adopts.
Retail Disruptions and Holiday Impact
The Independence Day holiday will bring some disruptions to various services in the U.S., but it won’t be as significant for retail. While USPS, UPS, and FedEx will not be delivering regular mail or packages, and major banks will close for the day, many other stores, including Walmart, Target, and the retailers listed below, will remain open.
Retailers Staying Open for Independence Day
Albertsons
Best Buy
Big Lots
BJ’s Wholesale Club
CVS
Kohl’s
Dollar General
JCPenney
Lowe’s
Macy’s
Adjusted Hours for Some Stores
While the majority of retailers will operate as usual, some stores will modify their hours for the holiday. Starbucks will adjust its hours, with some locations closing for the day, while others may close early. Trader Joe’s will close early, with all stores expected to shut by 5 p.m.
Retail Closures Beyond the Holiday
While most retailers are temporarily adjusting their hours for the Fourth of July, the retail industry continues to face challenges, with some stores shutting down permanently. For example, a popular retailer is closing a beloved mall location as part of a broader industry trend. Additionally, a discount retailer, under the umbrella of its parent company Kroger, recently announced the closure of five locations.
