Costco Makes Investment That’s Great For Members

It’s not exactly a secret that a core part of Costco (COST)’s business model is treating members well and making them feel valued.

“The most important item we sell is the membership card,” Costco CEO Ron Vachris told Fortune magazine in 2024.

Costco also recognizes that if it wants to retain members, it needs to keep investing in ways to improve the customer experience. 

Many people are cutting back on spending in the wake of persistently elevated living costs. For some, a Costco membership isn’t a given — it’s a luxury. 

“We continue to invest in building a larger pipeline of new warehouses, remodeling our existing warehouses to drive continued growth in high-volume buildings, expanding our depot network to support operations, and enhancing the member digital experience,” CFO Gary Millerchip told investors during the company’s most recent earnings call.

And there’s another investment Costco is making that could make shopping there better. 

Costco invests in higher employee wages

Costco has always prided itself on treating its workers well. The company is known to have a competitive starting wage, and upward mobility within the company is common.

In fact, Costco’s current CEO Ron Vachris began his career as a forklift driver. Now, he’s running the company.

“We feel good that we will continue to reinvest,” Vachris said during Costco’s most recent earnings call. “That is what we do, both in employees and in pricing and in the business overall.”

Last year, Costco shared plans to increase pay for most of its hourly U.S. store workers to more than $30 per hour, Reuters reported. And it seems the company is making good on that promise.

In a recent Reddit thread, Costco employees shared what their hourly pay looks like. And the numbers were impressive.

“I make 32.90 an hour while cashiering, and 33.90 an hour while driving a forklift in the morning,” said one employee.

Another Redditor said they’re now making more than $40 per hour.

But it’s not just that Costco pays a generous wage. As another Reddit user said, “I work 4-9 a.m. 5 days a week, and get great benefits for the family.”