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But this wasn’t just an economic/political quid pro quo. Our second point is that the administration tries to promote Costco as an example of how US businesses should treat employees. Costco’s people are well paid (for retail), and the firm offers good health insurance. Sinegal himself took home $350,000 in the last year he served as CEO, which sounds like a lot but is about one-third of the average for firms of Costco’s size.
That’s why the DNC got him onstage in Charlotte, N.C. His speech didn’t get that much attention, as he’s not exactly a rousing orator, and it went on late. Maybe Biden’s visit is a way of trying to raise those issues again.
“At our company, we recognize that job creation requires time and investment and commitment to the long term,” Sinegal said in his convention speech.
Last, Biden may just have been boosting D.C. Or an area of the city underserved by retail, in any case. The new Costco that the VP visited looms on a cliff in the northeast part of the city near the Anacostia River and the border with Maryland. It’s a lower-income area called Fort Lincoln, where local officials have put together a new shopping area named the Shops at Dakota Crossing. Costco is the first big tenant to open. Shoppers Food Warehouse and Marshalls are supposed to follow.
D.C. officials have long lamented that city residents who don’t live in the prosperous northwest quadrant have few retail options and must drive to Virginia or Maryland to shop. In visiting Costco, Biden brought attention to a place where D.C. residents can spend their bucks in D.C. – keeping jobs and tax revenue within the city.
QUIZ: Are you a smart shopper?