Costco’s Nantun store in Taichung has held the top profit spot across the company’s nearly 900 locations worldwide for years, according to the source material. That lead does not come from the U.S., Japan, or South Korea, but from central Taiwan. The latest signal is expansion: company executives were quoted as saying that, given Taichung’s population growth, as many as six Costco stores could be supported in the city.
One Taichung store sits at the center of Costco’s strongest market metrics
The report says Nantun’s profit rate has ranked No. 1 globally for multiple years, a record previously confirmed by Costco Asia President Chee-Han Chang. Taiwan also stands out beyond a single store. Of the world’s top 10 most profitable Costco locations, four are in Taiwan: Taichung Nantun, Taichung Beitun, New Taipei Zhonghe, and Taipei Neihu. Taiwan also accounts for three of the top five locations in Asia.
Revenue figures point to the same pattern. The Taichung Nantun and Taipei Neihu stores each generate more than NT$10 billion annually. Across Taiwan’s 14 stores, annual revenue totals about NT$140 billion, with annual profit exceeding NT$5 billion. Customer spending is also unusually high. Average ticket size at Costco in Taiwan is around NT$3,000, and renewal rates reach 95%. With Taiwan’s population at about 23 million, the report estimates that roughly one in six people is a Costco member.
Population growth and car-driven shopping help explain the city’s appeal
Taichung’s role in Costco’s expansion plans is tied to local demographics and spending habits. The city’s population has surpassed 2.86 million and has continued to grow, with a net increase of nearly 170,000 over the past decade. The source describes the city’s population structure as heavily weighted toward middle-class families, which aligns closely with Costco’s target customer base.
Car ownership is another major factor. Taichung has long ranked first in Taiwan for vehicle registrations, and warehouse retail depends on shoppers driving in and buying in bulk. That setup fits Costco’s model well. The report also points to returning Taiwanese business owners, especially around the Central Taiwan Science Park and precision machinery zones, as a driver of demand for imported goods, Kirkland products, and higher-priced home appliances.
Membership and payments are tightly linked in Costco’s retail system
The article also connects Costco’s performance to its payment structure. In physical stores, the company uses a closed-loop model limited to a single co-branded card or cash, tying membership status directly to the checkout process. Customers first pay an annual fee, then often apply for the co-branded card to gain convenience and rewards, reinforcing repeat visits.
That structure also strengthens Costco’s position in negotiations with banking partners. The source says banks compete for exclusive card rights in order to access roughly 3 million high-spending customers, accepting lower processing fees and paying substantial rights fees. On the digital side, Costco Pay and digital membership card integration allow the company to capture in-store spending behavior more precisely. The report notes that broader digital payment support, including stablecoin payments, is an area major global retailers are watching, though no concrete rollout was described.
A third Taichung store is already in motion
Taichung currently has two Costco locations, in Nantun and Beitun, and both are described as nearing saturation. A third store has been confirmed for the former Taichung Precision Machinery site, near the Dadu Mountain technology corridor, Taiwan Boulevard, and the future Blue Line B9-B10 metro stations. Taichung’s urban planning committee approved the land-use change late last year, with the next stage awaiting review by the Ministry of the Interior. The site covers about 3.21 hectares and is planned as a three-story warehouse store with a gas station.
The company’s ambitions appear to extend beyond that. A fourth Taichung location has already been listed as a priority target. Chee-Han Chang previously said Costco’s long-term goal in Taiwan is to expand from 14 stores to 25 stores. Known projects include a second Tainan store scheduled to open in 2028, while the Kaohsiung store, first opened in 1997, is set to relocate to the Asia New Bay Area. In 2022, Costco’s U.S. parent bought back a 45% stake in its Taiwan joint venture from the Ta Tung Group for US$1.05 billion, turning the business into a wholly owned operation.