Costco is planning a significant expansion plan to reach new markets, with CEO Ron Vachris stating that expansion is a major priority for the company. The company reported that it has 40.4 million paid memberships, a 9.5% increase from the previous year, and is focusing on expansion. Each new warehouse club store opens could generate thousands of new memberships and recurring fee revenue. The expansion could also increase the scale of Costco's purchasing power, allowing it to negotiate more favorable terms with suppliers to pass on savings. However, challenges remain as Costco's strategy shifts towards urban markets previously excluded. The retailer is also investing in technology and operational improvements to support increased store traffic.