Shares of Costco (NASDAQ: COST) have rewarded investors as they've skyrocketed 234% in the past five years. And in 2024, their 31% gain (as of June 17) is easily outpacing the broader S&P 500.

Clearly, this top retail stock has been a wonderful investment in the past. But I think the business is about to make a big strategic move that can further boost its financial performance. Let's take a closer look at Costco's operations.

Costco runs 876 warehouses, mostly in the U.S., which sell a wide range of high-quality merchandise at extremely low prices. This doesn't sound that unique on its own. But what makes this business stand out is that it operates a membership-based business model. For $60 a year, consumers can pay for the right to shop at Costco locations.

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Source Fool.com