In a tough year where big changes hit trade policies and companies scrambled to drop diversity programs, Costco has stuck to its guns. While others backed down, this warehouse giant kept pushing forward with what it sees as smart business moves. It's a story of staying true to core values amid political noise, and the results show in strong sales numbers that keep climbing.
The drama started early this year when a conservative group, the National Center for Public Policy Research, pushed a proposal at Costco's shareholder meeting. They wanted the company to look into risks from its diversity, equity, and inclusion efforts. But Costco's board shot it down flat, voting unanimously to tell shareholders to reject it. And they did—98% voted no. The board put it plain: “Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.” They added that a report like that wouldn't add any real value. Plus, they pointed out how having a mix of employees and suppliers sparks fresh ideas in products and services.
Fast forward to this month, and Costco took another big step. They filed a lawsuit against the U.S. government, aiming to get refunds if the Supreme Court knocks down President Trump's use of the International Emergency Economic Powers Act for tariffs. It's not alone in this fight—plenty of companies have sued for the same reason, hoping to claw back money if the tariffs get overturned. But Costco stands out as one of the biggest names in the mix, right alongside outfits like Bumble Bee Foods, EssilorLuxottica, and Kawasaki Motors. Costco didn't comment when asked for this piece, but the move speaks volumes about protecting the bottom line.
This all contrasts sharply with how other retailers handled things. Take Walmart, Tractor Supply, and Target—they've pulled back from DEI policies to play it safe. Target, in particular, has caught flak for flipping its stance. Once seen as forward-thinking, it now faces questions about consistency. Meanwhile, Costco's approach seems to be working. Their net sales jumped 8% year-over-year to $84.4 billion in the fiscal fourth quarter ending August. For the whole year, sales were up 8% too. That's steady growth in a rough economy where folks are watching their wallets.
Target's story is different. Sales there have flatlined for a few years now, hit by less spending on extras and, some say, the fallout from ditching DEI commitments. Analysts and watchers in the industry keep comparing the two, highlighting how Costco's firm stance hasn't hurt—and might even help—its performance. It's like Costco is proving that sticking with what works builds loyalty.
Christy Pruitt-Haynes, who's spent nearly 30 years in HR and DEI, including stints with the Memphis Grizzlies, Viacom (before it became Paramount), and Infiniti cars, sees it this way. She says Costco really doubled down and made it clear: “This is who we are,” “We’re not going to change,” and they weren't about to get pushed around. Other companies, she thinks, felt cornered and backed off from DEI. “I think some other organizations felt like their hands were tied, and people were almost forcing them to step away from their DEI efforts.”
Pruitt-Haynes stresses consistency as key. “Consistency matters,” she said. Target's big turnaround sent a message that you can't rely on them to stick to their word or keep doing what they've always done. That chips away at trust, and it's showing up in their numbers. Costco, on the other hand, keeps showing up the same way, and people respect that reliability.
On the tariff lawsuit, Pruitt-Haynes doesn't see it as a political jab. It's about the money—what's best for the business. But she figures Costco felt okay going forward because customers already view it as standing apart from Trump policies, thanks to the DEI vote. “There are other companies that I’m sure feel the same way but did not want to take the risk, quite honestly, of being targeted or showing up as anti-Trump administration,” she said. Costco's going the other route: being outspoken and betting that folks who share those views will stick with them, maybe even shop more.
Carol Spieckerman, a retail expert who's president of Spieckerman Retail and has analyzed the industry for years, agrees it's not about picking a fight with Trump. Costco's just tuning into what its members and stakeholders want, making choices that line up with good business. “I don’t think Costco necessarily checked the political temperature before making these decisions. But hypothetically, even if they had, I think the calculus still favors them, because on the tariff side, tariffs are deeply unpopular,” she said. And on DEI, she doubts many would boycott over it—in fact, some might appreciate Costco pushing for fairness.
Spieckerman praises how Costco handles this stuff without fanfare or drama. It's straightforward, not polarizing. Compare that to Target, which she says comes off as defensive, overexplaining, and all over the map. Target used to have a rep for being progressive, but now it's inconsistent. Costco? It's rock-solid across the board—from its no-frills pricing to steadily better private-label goods. “Costco has held steady, whereas it looked like Target was doing these wild swings from ditch to ditch,” she said. These moves just strengthen Costco's brand, not weaken it.
Looking deeper, Costco's story this year highlights broader lessons for any business navigating choppy waters. In an era where tariffs jack up costs on imports—hitting everything from canned tuna to eyewear—suing for potential refunds makes sense for a company built on low prices. Members count on those deals, and higher tariffs could squeeze margins or force price hikes. By challenging the policy, Costco's protecting that edge.
The DEI side ties into talent and innovation too. A diverse team brings different perspectives, leading to better products—like unique Kirkland Signature items that keep drawing crowds. Suppliers from varied backgrounds might offer exclusive deals or fresh ideas, keeping shelves stocked with winners. And in a tight job market, strong inclusion policies help attract and keep good workers, cutting turnover costs.
Sales growth tells part of the tale, but member loyalty might be the real win. Costco's model thrives on renewals—those $60 or $120 memberships that unlock the savings. When a company stays consistent, it builds trust. Shoppers know what to expect: quality, value, and a no-nonsense approach. In uncertain times, that reliability feels like a safe bet.
Contrast that with the backlash some retailers faced. Pulling back on DEI can alienate employees and customers who value it, leading to boycotts or quiet exits. Target's sales dip isn't just about the economy; it's tied to perceptions of waffling. Costco avoids that trap by owning its positions without apology.
Experts like Pruitt-Haynes and Spieckerman see this as a blueprint. Companies that lead with authenticity, even when it's tough, often come out ahead. Costco's not chasing trends or caving to pressure—it's focused on long-term gains. That mindset resonates in boardrooms and living rooms alike.
As the year wraps up, Costco's actions stand as a reminder: doing right by the business doesn't always mean following the crowd. Whether it's fighting tariffs or embracing inclusion, the warehouse chain shows that bold, consistent choices can drive success. With sales humming and members renewing, it's clear this approach is working. For anyone watching the retail world, Costco's path offers food for thought on balancing principles and profits.
