Despite charging shoppers an annual membership fee, Costco continues to attract some of the most loyal customers in retail, and not just in the U.S.
Many consumers willingly pay the fee because the warehouse club consistently delivers a combination that competitors struggle to match: well-known brands, reliable quality, and value pricing. That strategy has helped Costco build a strong reputation among budget-conscious consumers and brand loyalists.
Now the retailer is expanding its merchandise lineup through an unexpected collaboration that aims to tap into another passionate fan base.
Costco adds F1 merchandise to select warehouses
Costco (COST) has begun selling official Formula 1 (F1) merchandise at some of its warehouses, according to listings on the company’s website.
The items include branded caps and polo shirts representing several F1 teams, including McLaren, Red Bull Racing, Ferrari, and Mercedes. However, based on the sponsor partnerships displayed on the apparel, the merchandise appears to be from the previous racing season.
Prices remain relatively premium compared with the typical apparel sold at Costco stores. In Australia, caps are listed at AUD $50 ($35.59 USD) and polos at AUD $90 ($64.07 USD), according to Costco’s online listings.
Availability is also limited and varies by region and specific warehouse. Each location carries different teams and styles depending on inventory, according to consumers who have shared photos and videos of the merchandise appearing in stores on Instagram and TikTok in March 2026.
Even though the merchandise may be from last year, selling it in-store allows fans to see and try on the apparel before purchasing. Prices are also significantly lower than those listed in the official F1 online store, which could appeal to budget-conscious consumers.
Retailers often sell licensed merchandise from prior seasons at a discount, allowing warehouse clubs like Costco to offer lower prices than official team stores.
For now, the collaboration appears to be available only in the UK, Australia, and Canada.
TheStreet contacted Costco for comment on whether the F1 merchandise will expand to U.S. warehouses, but the company has not yet responded.
David Paul Morris/Bloomberg via Getty Images
Why Costco is rolling out the collaboration in international markets
While F1 has recently experienced rapid growth in its U.S. fan base, the sport’s popularity remains significantly stronger internationally.
The motorsport’s global fan base reached 827 million in 2025, representing a 12% year-over-year growth, according to the Formula 1 2025 Season in Numbers report.
Meanwhile, the U.S. fan base reached 52 million in 2025, up 11% from the previous year, according to the Formula 1 2025 Season Review.
“We continue to see robust growth and momentum in the U.S. market supported by the three unique races in the USA,” said F1 in the season review.
Race attendance data also highlights the sport’s stronger presence in other international markets, which may explain why Costco is prioritizing those regions for the initial merchandise rollout.
2025 Grand Prix attendance
- Australian Grand Prix: 465,000 attendees, according to F1 2025 season numbers.
- British Grand Prix: 500,000, according to F1 2025 season numbers.
- Canadian Grand Prix: 352,000, according to F1 2025 season numbers.
- Miami Grand Prix: 274,000 attendees, according to official data gathered by GP Destinations.
Strategic partnerships strengthen Costco’s customer loyalty
Costco’s merchandising strategy of partnering with recognizable brands at the right time and offering them at value pricing has helped the retailer maintain strong customer loyalty.
The company reached approximately 82.1 million paid membership accounts worldwide as of March 2026, up 4.8% year over year, and a renewal rate of 89.7%, according to its latest earning call.
That loyalty continues to translate into growth. In the second quarter of fiscal 2026, Costco reported net sales of $68.24 billion, rising 9.1% year over year, with comparable sales increasing 7.4%.
The company attributed the results to the introduction of new and seasonal items, emphasizing the success of its Valentine’s Day sales, citing rose purchases, during the earnings call.
More F1 Business News:
- Why F1’s sponsorship boom is nearing $3 billion
- Why Cadillac decided to work with a fashion icon
- Luxury brand shares surprising F1 partnership
According to Roger Dooley, a business strategy expert for Forbes, Costco’s success during both strong and weak economic cycles comes down to its consistent value proposition.
“By offering consistent value with strategic product selection, private label products and competitive pricing, Costco ensures that customers continue to return, even in tough economic times,” said Dooley.
Elizabeth Lafontaine, director of research at Placer.ai, told CNBC that Costco’s high visitor loyalty and adaptable merchandising model enable the retailer to push the boundaries of what consumers consider traditional warehouse club items and services.
“As the chain looks to grow and evolve, they will likely continue to push the limits of what products it can offer its members,” said Lafontaine.
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