Costco CEO Ron Vachris is expanding warehouses and integrating AI search optimization while maintaining the $1.50 hot dog pricing strategy.

Costco is working with leading AI companies to improve how its products appear in large language model search results, with AI-driven traffic growing by triple digits and showing the highest conversion rate of any traffic source.

The company plans 30-plus new warehouses per year and is expanding internationally into China, Japan, South Korea, Spain, and France; same-day delivery in the U.S. now averages under 45 minutes and has been rolled out in Spain and France.

Management has maintained Costco's low-cost pricing philosophy under new CEO Vachris, cutting prices on items like Kirkland Signature crispy wings, golf balls, and king-size sheets this quarter despite inflationary pressures, and expanding hot dog production capacity.