Costco makes a last-minute decision for all its members in the United States

In times of economic uncertainty, every move by major chains can have a direct impact on the wallets of millions. That's why, when a giant like Costco makes an unexpected change, consumers pay attention. This time, the company has surprised everyone with a measure that could make a difference compared to its competitors in the United States.

The decision was revealed during the latest earnings call. CEO Ron Vachris confirmed that Costco is taking concrete steps to prevent tariffs from affecting its members. Instead of passing those costs on to prices, the company has chosen to keep them steady and even lower them on essential products.

A strategy to take care of the customer

Costco has stood out for years for its excellent return policy and its effort to offer fair prices, but now it has taken another step to protect its members. According to Vachris, many products at high risk of tariffs were redirected to markets outside the U.S., thus avoiding direct impacts.

During the third quarter, this strategy allowed items like bananas and pineapples to avoid price increases. Chief Financial Officer Gary Millerchip explained that the company absorbed part of the costs: "We felt it was important to eliminate the impact for the member," he stated on the same earnings call. He also mentioned that prices have been reduced on other key products like butter, eggs, and olive oil.

This approach is no accident. The chain Costco gets a large part of their revenue through membership fees, so keeping their customers happy is a priority. That loyalty also gives the company room to take on certain costs without passing them on to the consumer, according to The Street.

A contrast with other major retailers

While chains like Walmart warn of possible price increases due to tariffs, Costco seeks the opposite. Walmart CEO Doug McMillon recently stated that his company will try to avoid increases, but they won't be able to absorb all the additional costs.

These kinds of statements have caused concern among consumers. In a context where inflation still hasn't fully eased, paying more for basics would be a tough blow to take. That's why Costco's commitment to stable prices is especially relevant.

Moreover, this stance is clearly beneficial for members and, at the same time, strengthens the company's image compared to the competition. While other chains in the United States are forced to pass costs on to customers, Costco gains ground by keeping firm in its strategy. With this decision, the company sends a strong message to the U.S. sector: it's possible to compete without hurting the consumer's wallet.