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· Superstore Offers Employees Pay Hike ... With a Catch
· Costco’s coronavirus-related surge won’t end anytime soon, analysts say
Superstore Offers Employees Pay Hike ... With a Catch
Costco is lining the wallets of its employees with even more money, but they won't get the loot unless they tough out the pandemic.
The chain's CEO sent out a memo to all of its employees, which reads in part ... "In recognition of your hard work during this unprecedented time, all full-time, part-time and limited part-time hourly Costco employees in the U.S. and Puerto Rico will receive an additional $2 per hour for hours worked during the five weeks of March 2 through April 5, 2020.
Sounds great, and God knows these employees are a lifeline for untold thousands of people who get food and vital supplies from the mega-store.
Here's the catch ... "The additional compensation will be paid in a lump sum in your April 17 paycheck."
Translation ... you gotta stick it out till the end and if you don't, you don't get the money...
Costco’s coronavirus-related surge won’t end anytime soon, analysts say
Analysts are bullish about mass retailers and grocers
By Tonya Garcia, MarketWatch
March 25, 2020
Everyone has seen clips of customers flocking to Costco Wholesale Corp. to stock up on everything from food to toilet paper and other necessities.
Cowen analysts say that coronavirus-related surge in demand will continue for months.
“We believe Costco is well positioned to continue delivering double-digit earnings growth over the near to medium term driven by square footage growth, membership revenue growth, and industry leading physical store traffic growth,” wrote Cowen analysts in a Tuesday note.
Among the reasons for the upbeat view, besides the recent jump in demand, are the long-term investments that Costco has made in things like e-commerce, the increase in memberships, and the solid state of Costco’s higher-income customer base.
Costco customers have average household income of about $74,000, Cowen said.
“[W]e do acknowledge many of these new members may cancel their memberships once the coronavirus passes, but nevertheless expect a lift in total members,” analysts wrote.
Even as stores struggle to keep some items in stock, Costco is able to shift to alternatives, particularly in categories like fresh food and domestic goods...
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