Costco seems just as popular as ever, from its $1.50 hot dog combo to its affordable pharmacy. Recently, some people have taken issue with the chain after the company defended its diversity, equity, and inclusion (also known as DEI) program, though. The controversy doesn’t seem to be slowing the company down since Costco is still planning to expand and open more locations this year.
Here’s what the DEI kerfluffle is all about, and where the new Costco locations will be.
What’s the DEI Controversy About?
Many companies have been called on by activist shareholders to shut down DEI programs and divisions. The National Center for Public Policy Research proposed to Costco to do the same, but Costco corporate rebuked the effort and urged its shareholders to vote against the proposal on Jan. 23, 2025.
In a proxy statement to investors, Costco said that the company’s “commitment to an enterprise rooted in respect and inclusion is appropriate and necessary” and that “efforts around diversity, equity and inclusion follow our code of ethics.”
Is There a Costco Boycott?
Costco’s strong response to the DEI proposal is ruffling feathers among some shoppers. Some accounts on X (formerly Twitter), Reddit, and other social media sites are calling for boycotting Costco. “For now I suggest conservative consumers find other places to spend their money if Costco is so dedicated to doubling down on DEI,” said Robby Starbuck, an anti–DEI activist, on X.
There’s also a lot of support for Costco’s position on social media — far more than backlash. “Because of this, I’m going to renew next year as are a few of my friends,” said u/Swimming_Tailor_7546 on r/BlackPeopleTwitter. “I was going to let my membership lapse. People do care about this!”
Why Is Costco Opening More Stores?
Despite any controversy over the anti-DEI proposal, Costco is still growing fast. Revenue from membership fees alone grew to $1.17 billion in the quarter ending Nov. 24, 2024, a 7.6% increase over the previous year. The chain is still expanding, and six new locations will open soon, putting the total number worldwide over 900.
Where Will the New Locations Open?
The six new Costco locations will open in these U.S. cities:
- Brentwood, California
- Genesee County, Michigan
- Highland, California
- Prosper, Texas
- Sharon, Massachusetts
- Weatherford, Texas
When Will the New Locations Open?
According to the Costco website, all six new locations will be opening in March 2025. Three have specific dates so far: Sharon will open on March 1, Prosper will open on March 14, and Weatherford will open on March 15. Opening dates for the other locations have not been announced yet.
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