Costco has been the most successful supermarket since the 1960s, but it’s about to become even more successful.
Costco Wholesale Corp. has announced plans to add two new stores this year to its growing roster of more than 500.
The first store, located in the suburbs of San Jose, Calif., will be open in mid-August, the company said.
Costco plans to open at least two more stores by 2021.
The company also announced a partnership with Whole Foods Market, a unit of the same company that owns Kroger and other grocery chains.
Costco said it will be selling items from Whole Foods to other Costco stores.
The other store is expected to open later this year in a suburb of Las Vegas, Nev.
The company has said it plans to expand its operations to other states by 2021 and in the U.S. by 2023.
Read more Costco has a reputation for being a low-price grocer.
Its prices are usually lower than its competitors.
Costco’s biggest customers are big department stores such as Macy’s, Wal-Mart and Target.
Its sales have grown about 20 percent a year over the past five years, the largest gain among the leading supermarkets in the country, according to a report from research firm EMC.
Costco is one of the fastest-growing grocery chains in the United States.
Its shares rose more than 9 percent to $26.60 in late afternoon trading.
The announcement comes just as Costco has ramped up its efforts to attract shoppers.
The retailer is opening more than 60 stores in the past 12 months, expanding the number of locations from 100 to 250 by the end of the year.
In December, it opened two new Costco stores in Florida and three in Georgia.
Costco also plans to move one store from New Jersey to Maine in 2021.
In its announcement, Costco said its stores would be “better positioned to compete against the many other chains in this rapidly expanding marketplace.”
Costco said it would expand its online sales by at least $2 billion to 20 stores a year.
The average online purchase price for a Costco membership was $99.99 in the first quarter.