Apr 10, 2026
In 1994, the beloved wholesale retailer known for its bulk products and cheap hot dogs expanded its operations to Asia, and in 1999 they opened their first store in Japan. As of 2025, Costco (NASDAQ: COST) has 81 million paid members worldwide, according to data published by F. Watty via Statista (1). Around 6 million of those members were in Japan, according to a newsletter by Trung Phan in late 2025 (2).
According to Phan, Japan is Costco's second-largest market after North America (3). And despite Costco being a global entity, selling universal products as well as foods and items specific to each store's area, it is the reminiscence of America that really sells.
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"Costco founder Jim Sinegal said the top-selling product in Japan is Downy Fabric Softener" Phung wrote in an X post (4). He says that Sinegal did not understand why until they began tracking it in the warehouse where he saw Japanese customers open the bottle, take a whiff and say, 'This smells like America.'"
How Costco adapted in Japan's market
When Costco opened its first store in Okinawa, Japan in August 2024, the line to get in was five hours long (5).
It's not just having products that "smell like America" that make Costco's Japan stores a success. It's that they feel like America, too. And waiting in a long line to purchase things is pretty American in and of itself.
Costco combined fresh, local products, their signature Kirkland line and bulk American products to ensure an array of options that make the store what it is. This ensures that customers are being offered more than what they could already get at their local grocery store, while also adding the brand power of Kirkland to set them apart.
Many Japanese customers were also noted to be share-buying (6). Given the fact that houses in Japan are small by Western standards, many customers don't feel they have the space or need to store large amounts of bulk products. Instead, customers were dividing up purchases after the fact, and some were even re-selling products at their own stores.
While Costco does not get a direct share of re-sold products, they ultimately benefit from this way of shopping as it increases overall memberships, as opposed to people not shopping there at all due to lack of need or space. And some share-buyers found it hard to resist getting their own membership, since buying products off of a cardholder lacks the experience of strolling through Costco's abundant aisles. By selling the quintessential American experience of Costco, they were able to find success in Japan.
Article Sources
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Statista (1); Read Trung (2),(3),(6); X (4); Tasting Table (5)
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Em Norton is a Staff Writer for Moneywise. Em holds a B.A. in Professional Writing from York University and has been writing professionally since 2019. Em's work has previously been published by Room Magazine, IN Magazine, Our Canada and more.
