Costco Leans Into Memberships Amid Tariff Uncertainty
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Costco is focusing on its membership model to navigate tariff uncertainties with Canada and Mexico. Membership fees account for over 70% of its operating profits, providing a buffer against inflationary pressures.
March 07, 2025 | 1:15 am
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Costco's reliance on membership fees, which constitute over 70% of its operating profits, positions it well to handle tariff uncertainties with Canada and Mexico. This strategy provides a buffer against inflationary pressures.
Costco's business model, heavily reliant on membership fees, provides stability in uncertain tariff environments. This reduces the impact of potential cost increases due to tariffs, making it a strong strategy in inflationary times.
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