Costco CEO Ron Vachris said in an interview with Fortune that one item sold by the wholesale chain was more important than any other item in the store.
Costco Wholesale’s deals on hot dogs, gasoline, and thousands of bulk items may seem like the best the chain has to offer, but according to the company’s CEO, one item sold trumps everything else inside the big box in terms of value. "The most important item we sell is the membership card," Costco CEO Ron Vachris told Fortune during an interview last month. "Everything we do supports that transaction." Costco offers two types of memberships: Executive and Gold Star.
But the real savings come with the Executive membership, which costs $120 per year. With an Executive membership, members get all the benefits of a gold membership, plus additional benefits and discounts on Costco services. On top of that, members get an annual 2% reward of up to $1,000 that can be used on eligible Costco and Costco travel purchases.
For instance, if a member spends $300 per month on household essentials like groceries, apparel and paper products; $1,000 per year on appliances and electronics; $300 on furniture and bedding; and $600 per year on auto, travel and lifestyle, they could get about $110 back from Costco, according to a calculator on the company’s website. All members also get daily deals like the wholesale club’s popular $1.50 hot dog and drink combo.
Fox News Digital has reached out to Costco for comment, but did not immediately hear back. Costco’s most recent annual report showed membership grew to nearly 128 million last year, with a 90% renewal rate. The revenue from membership fees last year increased by 8%, bringing the total to $4.6billion.
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