Gold bars and $5 chickens make Costco an inflation wave winner

Financial Times

The no-frills retailer Costco Wholesale has emerged as one of the big winners of the US inflation wave, drawing in millions of consumers willing to pay at least $60 a year to gain access to member-only warehouses stocked with bargain-priced produce, paper towels, appliances and $5 rotisserie chickens.

Customers’ $60 annual memberships grant entry to warehouses. An extra $60 gives them an “executive” membership that provides a 2 per cent annual rebate on purchases. Renewal rates top more than 90 per cent. Once they have paid the fees, members are inclined to visit stores more often, said Joe Feldman, retail analyst at Telsey Advisory Group.

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