US_ Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers) ( Abigail Archer - DAILY CALLER )

DAILY CALLER

Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

(Photo by Cheng Xin/Getty Images)

Abigail Archer
Contributor
July 09, 2026 5:35 PM ET


Costco has revealed the “secret weapon” that continues to drive its business model, according to a Wall Street Journal (WSJ) report released Thursday — and it is as simple as paying its long-term workers well.

Costco ranks highly among retailers in wages for hourly workers, with top pay for roles such as cashiers at $32.90 per hour, according to the report. Its base hourly rate of $19.50 remains the highest base floor among large non-specialty retailers in the United States.

Other similar retailers fall behind Costco, especially for non-skilled positions. Walmart’s average hourly pay for field associates is $18.25, while its average hourly pay for supply chain associates is $27, according to its website. Lowe’s pays most hourly workers between $15 and $24, with some Pro Customer Service specialists earning up to $28. Home Depot’s hourly pay generally ranges from $15 to $26. Its highest hourly earners, skilled Pro Desk Associates, can earn up to $32.

Costco has offered higher hourly wages for years to limit turnover and foster stable growth, the WSJ report said. Its founders hoped these efforts would reduce training costs for new hires and result in superior customer service. Turnover after a year of employment at the company remains at seven percent — small compared to a retail industry that averaged 60 percent turnover for frontline workers in 2022, according to a study performed by the McKinsey consulting firm. (RELATED: South Korea’s Liberal Government Creates New Headaches For US Business)

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READ MORE: https://dailycaller.com/2026/07/09/costco-business-pay-workers-long-tenured-investment-benefits-gary-millerchip-tony-barzar-mckinsey/

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