Costco Announces Higher Base Pay. Customer Loyalty + Profits.

What’s happening? Costco announced today that it would increase its base pay to $16/hour.

Why is this important? Costco leadership talks about increased base pay like a champion for stakeholder economy: “This isn’t altruism. At Costco, we know that paying employees good wages and providing affordable benefits makes sense for our business and constitutes a significant competitive advantage for us.”

How will this be important? Local governments and states are considering higher minimum wages and point to businesses closing. This example will be lauded to support higher minimum wages.

Market Watch | ‘I will continue happily shopping there forever’: Costco customers react to retailer’s new $16 minimum wage