Dive Brief:
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Although President Barack Obama is not expected to mention Issaquah, Wash.-based Costco Wholesale Corporation by name in his State of the Union address Tuesday, he has praised the budget retailer’s workforce policies in the past and is planning a post-address visit to a Maryland Costco store Wednesday.
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At about $20 an hour, Costco pays well for a retail company, especially a budget retailer, offers health benefits, and allows union membership — and its executives have supported the president’s push for better wages and benefits for retail workers.
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The company is the fourth-largest retailer in the U.S. and the world, and has seen its sales and stock price rise since 2009. Those trends are continuing under new CEO Craig Jelinek.
Dive Insight:
Although Costco’s worker-friendly policies have been favorably compared to Wal-Mart Stores, Inc., which is in the midst of a lawsuit from the National Labor Relations Board over its anti-union actions, the two retailers are decidedly different. Costco is much smaller and is seen as benefiting from favorable warehouse locations in city suburbs. Even as President Obama singles out Costco for its livable wages and pro-union policies, the retailer will be under pressure as competition for budget-minded consumers' dollars heats up. It remains to be seen how Costco's workplace policies hold up under this high-pressure budget-retail environment.