Is Costco Optical a separate company or franchise?

No. Costco Optical is a department owned and operated by Costco Wholesale Corporation. Departments are not franchised. The optometrists who perform exams are independent doctors leasing space, but the retail operation belongs to Costco.

Is Costco Optical publicly traded?

The business is not separately listed. Costco Wholesale Corporation trades on NASDAQ under ticker COST.

When did Costco start selling eyewear?

Costco opened its first optical labs in 1987. The departments have since expanded to more than 600 U.S. warehouses.

Do you need a Costco membership to use the optical department?

You need a membership to buy glasses or contacts. However, the independent doctors of optometry located in or near most warehouses will examine non-members, though a prescription purchase still requires membership.

How big is Costco Optical?

Costco Optical operates in more than 600 U.S. warehouses as of 2026 and has historically ranked among the top five U.S. optical retailers, with estimated annual U.S. sales above $1.5 billion.

Does Costco make its own lenses?

Yes. Costco operates its own optical laboratories, including a facility in National City, California, that produces prescription lenses for its departments.

Healthcare & Pharmaceuticals

Who Owns Costco Optical?

Costco Optical is owned and operated by Costco Wholesale Corporation (NASDAQ: COST), headquartered in Issaquah, Washington. Costco opened its first optical labs in 1987 and now runs departments in more than 600 U.S. warehouses, ranking among the largest optical retailers in the country.

Parent Company

Costco Wholesale Corporation

Founded

1987

Status

Publicly Traded

Headquarters

Issaquah, Washington, USA

Costco Optical Timeline

1983

Costco Wholesale Corporation

Parent company established in Issaquah, Washington, USA

Company Founded

1987

Costco Optical

Founded by Costco Wholesale Corporation (internal development)

Founded

budgetmass marketUnited StatesOfficial Website

Who Owns Costco Optical?

Parent Company: Costco Wholesale Corporation
Ownership Type: Brand division
Company Type: Publicly Traded
Stock Ticker: NASDAQ: COST

Brand	Parent Company	Ownership Type
Costco Optical	Costco Wholesale Corporation	Brand division

Where to Buy

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Costco Optical on Amazon

History of Costco Optical

Founded: 1987
Founders: Costco Wholesale Corporation (internal development)

Costco opened its first optical labs in 1987, the same year Price Club opened its own, according to the company's historical highlights. The format followed the standard Costco playbook: take a category with high markups, strip out the margin, and offer members a materially lower price inside the warehouse.

Through the 1990s and 2000s, optical departments spread with the warehouse network. The service combined walk-in retail for frames and lenses with independent doctors of optometry providing exams next door. Costco invested in its own lens manufacturing rather than outsourcing, including a dedicated optical laboratory in National City, California, which produces prescription lenses for departments.

By 2015, Costco Optical ranked as the fifth-largest optical company in the United States. In 2006, the department received the National Vision Retailers award for highest customer satisfaction from J.D. Power and Associates, one of the few third-party quality recognitions in the category at the time.

The business kept pace with warehouse expansion into the 2020s. Contact lens reordering moved online, and departments were included in nearly every new U.S. warehouse. As of 2026, more than 600 U.S. Costco warehouses operate optical departments, and Costco continues to hire licensed opticians across its major markets. Industry estimates place U.S. Costco Optical sales above $1.5 billion, roughly $2.5 million per department per year.

About Costco Wholesale Corporation

What does Costco own?
Costco Wholesale Corporation owns and operates 923 membership warehouse locations worldwide and owns the Kirkland Signature private label brand. The company also operates Costco Pharmacy, Costco Optical, Costco Travel, Costco Auto Program, and Costco Gasoline as service businesses within its warehouses. Costco's e-commerce platform extends its product offering beyond what is available in warehouses. Kirkland Signature generates approximately $50 billion in estimated annual sales.

Is Costco publicly traded?
Yes, Costco Wholesale Corporation is listed on NASDAQ under ticker COST. The company has been publicly traded since December 1985. Costco has no single controlling shareholder, with major institutional holders including Vanguard Group, BlackRock, and State Street. The company has a single class of common stock with equal voting rights per share. Co-founder James Sinegal reduced his stake significantly after retiring as CEO in 2012.

Who founded Costco?
Costco was founded in 1983 by James Sinegal and Jeffrey Brotman in Seattle, Washington. Sinegal had previously worked at Price Club, the pioneer of the membership warehouse club concept founded by Sol Price in San Diego in 1976. The first Costco warehouse opened in Seattle in September 1983. Costco merged with Price Club in 1993 to form PriceCostco, which was later renamed Costco Wholesale Corporation.

Where is Costco headquartered?
Costco Wholesale Corporation is headquartered in Issaquah, Washington, USA, a suburb of Seattle. The company was originally headquartered in Kirkland, Washington, which is the origin of the Kirkland Signature brand name. Costco operates 939 warehouse locations across the United States, Canada, the United Kingdom, Japan, South Korea, Australia, Spain, France, China, and other countries as of September 2026.

How many warehouses does Costco operate?
As of September 2026, Costco operates 939 warehouse locations worldwide, including 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, 7 in China, 5 in Spain, 3 in France, 2 in Sweden, and one each in Iceland and New Zealand. Costco typically opens 25 to 30 new warehouses per year as part of its ongoing expansion program.

Who is the CEO of Costco?
Ron Vachris serves as President and CEO of Costco Wholesale Corporation, having succeeded Craig Jelinek in January 2024. Vachris joined Costco in 1986 and spent his entire career at the company. He served as President from 2011 until becoming CEO. Jelinek had led the company since 2012, succeeding co-founder James Sinegal.

What is Costco's annual revenue?
Costco reported net sales of approximately $254.0 billion for fiscal year 2025 (ended September 1, 2025), up approximately 8% from FY2024. Q1 FY2026 (ended November 24, 2025) net sales were $65.98 billion, up 8.2% year-over-year. Membership fees account for approximately 7% of total revenue but a much larger share of operating income, as the merchandise business operates on very thin margins.

Founded: 1983
Headquarters: Issaquah, Washington, USA
Company Type: Publicly Traded
Stock: NASDAQ: COST
Revenue: $254.0B (FY2025)
Employees: ~316,000

Visit Costco Wholesale Corporation website

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Where Is Costco Optical Made / Based?

Headquarters: Issaquah, Washington, USA
Manufacturing / Operations: United States

Costco Optical Categories & Tags

Optical Eyewear Vision Care Costco Eyeglasses Contact Lenses

Costco Optical Recalls & Controversies

Costco Optical has no major recalls or lawsuits on record. Scrutiny in the category is mostly structural. The Federal Trade Commission updated its Eyeglass Rule in 2024 to tighten requirements that prescribers release prescriptions and obtain confirmation, a change affecting all optical retailers including Costco's partner optometrists.

Critics also note the membership wall: non-members can get an exam from the independent doctor but cannot buy glasses at Costco's prices, which effectively ties a healthcare-adjacent purchase to a $65 annual fee. The broader controversy in the market is EssilorLuxottica's vertical control over frames, lenses, insurance, and retail, which pressures independents and clubs alike on supply terms rather than price competition alone.

Costco Optical Ownership: Pros & Cons

Advantages

+Pricing well below mall optical chains drives strong member value perception
+In-house lens labs control quality and turnaround cost
+More than 600 U.S. departments give national reach inside existing warehouses
+Exam traffic from independent optometrists feeds eyewear sales
+J.D. Power-recognized customer satisfaction history

Considerations

-Membership requirement limits the addressable customer base
-No standalone stores, so reach ends where warehouse coverage ends
-Insurance network participation varies by independent doctor and plan
-Dependent on major frame suppliers, including vertically integrated rival EssilorLuxottica
-Healthcare regulatory environment, including FTC eyeglass rules, adds compliance obligations

Frequently Asked Questions About Costco Optical

Sources & Further Reading

Competitors to Costco Optical

These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.

Brand	Parent Company	Country	Founded	Market Position	Primary Market	Gender Target
Acuvue	Johnson Johnson	USA	1987	Mass market	Global	All Genders
Alcon	Alcon	Switzerland	1945	Leader	Global	Unisex
Bausch + Lomb	Bausch Lomb	Canada	1853	Leader	Global	Unisex
ClearLab	Menicon	Singapore	2006	Mass market	Asia pacific	Unisex
CooperVision	Coopercompanies	USA	1980	Leader	Global	Unisex
Menicon	Menicon	Japan	1951	Leader	Asia pacific	Unisex