Tag: Costco

Whole Foods, Costco, Kroger limiting egg purchases as shortages persist

‘Barron’s Roundtable’ panelists Megan Leonhardt, Al Root and Ben Levisohn discuss avian flu and top stocks.

Costco, Kroger and Whole Foods are among the growing list of grocers that are putting a purchasing limit on eggs as supply shortages persist.

Companies started imposing limits on the product as the shortage caused by outbreaks of highly pathogenic avian influenza (HPAI), or bird flu, persists, causing a frenzy among shoppers. Droves of viral videos have surfaced in recent weeks, showing shoppers stockpiling eggs. One video posted on TikTok claimed that an entire section of eggs at a Costco was gone in less than 10 minutes.

Amazon-owned Whole Foods posted signs on its shelves notifying customers that customers can only buy three cartons of eggs at one time.

“We are currently experiencing difficulty sourcing eggs that meet our strict animal welfare standards,” a sign posted at one of its stores in New York City read.

TRADER JOE’S PUTS CAP ON HOW MANY EGGS SHOPPERS CAN BUY

Kroger confirmed to FOX Business that some banner divisions are also limiting egg sales. At stores where limits are in place, the company is asking customers to only buy two dozen eggs per trip, a spokesperson told FOX Business.

Trader Joe’s told FOX Business on Monday that it is limiting egg purchases to one dozen per customer, per day. The limit applies to every Trader Joe’s grocery store in the U.S., according to the company.

A sign at a Whole Foods store in New York City, telling customers they need to limit their egg purchases. (Fox Business / Fox News)

Costco also confirmed to CNN that it was limiting customers to three packages of eggs.

Experts have warned that egg shortages will continue as bird flu outbreaks continue to impact the U.S. laying hen flock.

Bernt Nelson, an economist with the American Farm Bureau Foundation, told FOX Business, estimated that more than 136 million birds have been affected by avian influenza since 2022. In December, there were over 18 million birds affected, which he said led to “bare grocery shelves in some places and widespread higher prices.”

Ticker	Security	Last	Change	Change %
AMZN	AMAZON.COM INC.	233.14	+3.99	+1.74%
COST	COSTCO WHOLESALE CORP.	1,061.92	+18.11	+1.73%
KR	THE KROGER CO.	65.28	+0.28	+0.43%

According to the Department of Agriculture (USDA), prices were 36.8% higher in December 2024 than a year earlier, but they were still below peak prices in January 2023.

In 2025, the USDA predicted that egg prices, which can vary significantly from month to month, will increase by more than 20%.

BIRD FLU VACCINE: WHAT TO KNOW

Shelves normally filled with egg cartons at a Whole Foods store in New York City, (Fox Business)

Not only are consumers feeling the effects of high egg prices at the grocery store, but they’re facing surcharges at restaurants.

Notably, Waffle House, a Southern breakfast food chain, added a temporary 50 cent per egg surcharge to all of its menus last week. The company blamed the ongoing egg shortage for the dramatic increase in egg prices, saying that “consumers and restaurants are being forced to make difficult decisions.”

Placards on a store shelf inform customers that cage-free eggs are coming back soon. (Fox News Digital / Fox News)

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Smaller eateries, like New York-based Mexican café and bakery Ursula, are being impacted. Ursula owner and head chef Eric See told FOX Business that the prices of whole eggs have doubled, while the cost of liquid eggs has risen by about 25%.

February 11, 2025

Costco CEO, execs members of Washington business group dedicated to “racial equity”

‘The Big Money Show’ explores companies turning against DEI policies while Costco bucks the trend.

Costco’s CEO and several executives are affiliated with a Washington business group dedicated to advancing “racial equity for Black Washingtonians,” showcasing just how deeply committed the grocery wholesaler is to diversity, equity and inclusion as it faces mounting pressure from investors to drop the controversial programs.

Washington Employers for Racial Equity is a group that brings together local business leaders, ranging from Costco CEO Ron Vachris to Microsoft President Brad Smith in order to support “Black Washingtonians” and build “a future rooted in equity for all,” according to its website.

WERE members have pledged to achieve a series of equity-related goals by the year 2030. Among those goals are racial quotas for their workforce, vowing to have the percentage of Black employees mirror the percentage of working-age Black people living in the communities the WERE members are doing business in, investing a combined $2 billion in programs to support “racial equity,” increasing investment in Black-owned business and providing anti-bias training.

COSTCO AWARDED EXECUTIVES HUNDREDS OF THOUSANDS IN DEI-RELATED BONUSES

Several Costco execs are members of a “racial equity” business group.

“Equity will increase prosperity for our entire state. Our communities will be stronger, healthier, and more vibrant. Our economy and our companies will benefit from a greater diversity of ideas, a more robust talent pipeline, and increased opportunity for all Washingtonians. We will start by owning our part of this problem, actively working to contribute to solutions, and using our voices to advocate for governmental action that supports transformational and lasting change,” WERE’s report “The Commitment to Progress: An Equitable Future for Washington,” said.

In addition to Vachris, several other Costco execs are members of WERE’s “Supplier Diversity Task Force.” Costco Director, Journeys, Diversity & Inclusion Claude Green, Senior Vice President, Corporate Foods & Sundries Nancy Griese and Food & Sundries Assistant General Merchandise Manager Leanne Bender are all listed as being part of the taskforce.

“This task force focuses on removing barriers and identifying opportunities to improve supplier diversity and support investment in Black-owned businesses,” the website stated.

The grocery wholesaler has been under pressure to drop their DEI policies. (Justin Sullivan/Getty Images / Getty Images)

WASHINGTON AG STANDS BY COSTCO, BLASTS REPUBLICAN ATTORNEYS GENERAL THREATENING DEI CRACKDOWN

Costco’s commitment to diversity, equity and inclusion has made the grocery wholesaler the focus of a broader national conversation around DEI. In January Costco’s board shot down an investors’ proposal to investigate the risks associated with their DEI policies, which led to backlash as well as support from the Rev. Al Sharpton, who staged a “buy in” at wholesaler’s Harlem location.

In response, 19 states’ attorneys general wrote a letter to CEO Vachris ordering the grocery chain to drop their DEI policies to get in line with President Trump’s executive orders combating the controversial programs.

A former Costco executive Roger Campbell told Fox News Digital that DEI is part of the company’s culture, and a key ingredient in the secret sauce that made the grocery chain so successful.

President Trump has signed several executive orders combating DEI. (Andrew Harnik/Getty Images / Getty Images)

“The term DEI didn’t even exist to us, it was the way we ran our business… it’s who we are,” former Costco International Division Senior Vice President Roger Campbell told Fox News Digital.

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Several members of Costco’s board donated heavily to Democratic party aligned groups, with Chairman of the Board Hamilton E. James having given $100,000 to the Harris Action Fund in May 2023, FEC data revealed.

Neither WERE nor Costco responded to Fox News Digital’s request for comment.

February 11, 2025
Costco awarded execs hundreds of thousands in DEI related bonuses

‘The Big Money Show’ explores companies turning against DEI policies while Costco bucks the trend.

Costco doled out hundreds of thousands in bonuses to their CEO and top execs based on diversity, equity and inclusion and environmental metrics between the years of 2021-2024, a Fox News Digital analysis has found.

The grocery wholesaler giant paid CEO Ron Vachris a $93,333 bonus in 2024 based on achieving social and environmental objectives, which included “metrics concerning diversity, equity and inclusion, resource consumption, and other environmental-related areas,” according to their 2024 proxy statement. Other executives were offered $24,000 in bonuses related to achieving diversity, equity and inclusion metrics.

In 2023, then-CEO Craig Jelinek was awarded a $100,000 bonus for meeting environmental and DEI metrics, according to that year’s proxy statement. Other execs were awarded up to a $24,000 bonus for hitting DEI benchmarks. DEI-linked bonuses have been awarded every year since 2020, Costco proxy statements revealed.

WASHINGTON AG STANDS BY COSTCO, BLASTS REPUBLICAN ATTORNEYS GENERAL THREATENING DEI CRACKDOWN

Costco has doled out bonuses on the basis of hitting DEI metrics, their proxy statements reveal.

The wholesale giant has been tight-lipped about their DEI policies, and Fox News Digital was unable to determine which specific metrics the bonuses were tied to. The company didn’t respond to a request for comment. However, Costco’s website sheds some light on the company’s DEI initiatives.

“The role of the company’s Chief Diversity Officer (CDO) is to support the advancement of inclusion at Costco, the growth of a diverse employee base, our relationships in the communities where we do business and an increase in our base of diverse suppliers,” according to the website.

FORMER COSTCO EXECUTIVE DEFENDS ITS DEI POLICIES, SAYS CRITICS DON’T UNDERSTAND THE COMPANY’S CULTURE

Al Sharpton staged a “buy in” to support Costco upholding DEI metrics. ((Photo by Michael Nigro/Pacific Press/LightRocket via Getty Images) / Getty Images)

Costco has managers and employees take a course in “inclusive conversations,” which the website lists as “10 modules of conversations to encourage leaders and employees to engage in inclusive conversations.” The program was launched in 2020, and as of 2024 new content was added to facilitate connections “across differences, manage assumptions and make people feel heard,” per the website.

The grocery chain also lists the demographics of its “Supervisor in Training” program, which is designed to help with the professional development of employees. According to their website, 57.3% of the 7,000 employees who participated in the training program identified as “People of Color.”

Waves of backlash and support have crashed on the wholesaler ever since the board overwhelmingly voted to reject a proposal challenging their DEI initiatives in January. Rev. Al Sharpton staged a “buy in” at the Costco location in Harlem to reward the company for sticking with DEI, but 19 states’ attorneys general have ordered the grocer to drop the controversial policies in order to conform with a Trump administration executive order.

A former Costco exec said DEI has always been the company’s culture. (Callaghan O’Hare/Bloomberg / Getty Images)

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Former Costco executive Roger Campbell pushed back on critics of the company, saying that DEI has always been part of their culture.

“The term DEI didn’t even exist to us, it was the way we ran our business… it’s who we are,” Campbell said.

February 7, 2025
Costco, Teamsters, reach ‘tentative agreement’ likely averting strike as company’s DEI controversy rages on

The Big Money Show explores companies turning against DEI policies while Costco bucks the trend.

The looming threat of 18,000 Costco store employees heading to the picket lines appears less likely, with the Teamsters labor union announcing Saturday that it has reached a tentative agreement for a new contract with the grocery chain.

The negotiations come amid Costco standing firm on its Diversity, Equality, and Inclusion (DEI) policies as most companies turn their backs on the controversial initiative.

“The tentative agreement will be presented to the membership for a vote,” the union, which represents 18,000 Costco workers, wrote in a post on X without providing any details about the agreement with its negotiating committee.

Shoppers outside a Costco store in Bayonne, New Jersey, US, on Saturday, Dec. 9, 2023. Costco Wholesale Corp. is scheduled to release earnings figures on December 14. Photographer: Angus Mordant/Bloomberg via Getty Images (Angus Mordant/Bloomberg via Getty Images / Getty Images)

O’LEARY RIPS COSTCO FOR BUCKING DEI TREND: ‘BAD FOR BUSINESS’

Reuters, citing a memo sent to employees this week, reports that Costco is set to increase pay for most of its hourly U.S. store workers to more than $30.

According to the memo, the company will increase hourly pay for its top-of-the-scale employees over the next three years. Pay will rise by $1 to $30.20 in the first year and an extra $1 each in the subsequent two years. The bottom-of-the-scale employees will also get an increase of 50 cents to $20.

Teamsters members at Costco voted overwhelmingly in favor of a strike on Jan. 20 if a new three-year contract agreement could not be reached by midnight last night when the current contract expired.

The strike would affect 50 Costco stores across New York, New Jersey, Virginia and Washington. Costco has 617 stores nationwide.

The workers are looking for better wages, benefits, and work rules amid the company making a record $7.4 billion profit in its most recent fiscal year, which ended on Sept. 1.

The grocery wholesaler, who has long held a pro-worker image, has been locked in a protracted battle with the Teamsters union, which represents 18,000 of Costco’s 219,000 U.S. worker base.

The Teamsters are accusing the grocery club of not sharing its record 2024 profits – which doubled since 2019 – with its workers and have claimed Costco has engaged in “illegal and reckless behavior,” including kicking union reps out of stores, preventing employees from wearing Teamster buttons and changing the locks on union bulletin boards.

Talks broke down in January when Costco refused to reach a card check agreement. Card checks would make it easier for workers to join unions by eliminating secret ballots. About 85% of Costco’s unionized employees voted to authorize a strike.

Storch Advisors CEO and former Toys”R”Us and Target executive Gerald Storch reacts to a strong November retail report and explains how industry winners are value-based players.

STATE AGS WARN RETAIL GIANT COSTCO FOR DOUBLING DOWN ON ‘DISCRIMINATORY’ DEI

Teamsters President Sean O’Brien recently threw down the gauntlet to Costco executives.

“Costco has two choices: respect the workers who made them a success or face a national strike,” O’Brien said in a statement.

“Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down.

The talks come as Costco doubles down on its DEI policies.

While big companies like Target, McDonald’s and Walmart backed off from their DEI policies, Costco shareholders voted last week to reject an anti-DEI proposal brought by activist shareholder group National Center for Public Policy Research. The measure would have required the wholesale grocery chain to issue a report on the risks associated with their DEI policies.

O’Leary Ventures Chairman Kevin O’Leary declared Costco “nuts” during Wednesday’s “The Big Money Show” for not ditching DEI arguing it is bad for business. (Photo by Tayfun Coskun/Anadolu via Getty Images / Photographer: Ting Shen/Bloomberg via Getty Images / Getty Images)

At its annual meeting recently, more than 98% of shares voted against the proposal.

During his first week in office, President Donald Trump issued an executive order directing the termination of discriminatory practices in the federal government and encouraging termination in the private sector. Following the order, attorneys general from 19 states urged Costco to turn away from its DEI policies.

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O’Leary Ventures Chairman Kevin O’Leary declared Costco “nuts” during Wednesday’s “The Big Money Show” for not ditching DEI arguing it is bad for business.

“They’re nuts if they think I want them fighting the federal government on policy,” O’Leary said. “I don’t care who took that poll when there’s no way you’d get that result today. You don’t fight the attorney general in multiple states, you got to be out of your mind.”

Reuters contributed to this report.

February 1, 2025
O’Leary rips Costco for bucking DEI trend: ‘Bad for business’

‘The Big Money Show’ explores companies turning against DEI policies while Costco bucks the trend.

As more companies turn their backs and rescind DEI policies, Costco’s move to stand firm puzzled O’Leary Ventures Chairman Kevin O’Leary.

The “Shark Tank” investor declared Costco is “nuts” during Wednesday’s “The Big Money Show” for doubling down on DEI.

During his first week in office, President Donald Trump issued an executive order directing the termination of discriminatory practices in the federal government and encouraged termination in the private sector. Following the order, attorneys general from 19 states urged Costco to turn away from its DEI policies.

STATE AGS WARN RETAIL GIANT COSTCO FOR DOUBLING DOWN ON ‘DISCRIMINATORY’ DEI

While big companies like Target, McDonald’s and Walmart backed off from their DEI policies, Costco shareholders voted last week to reject an anti-DEI proposal brought by activist shareholder group National Center for Public Policy Research. The measure would have required the wholesale grocery chain to issue a report on the risks associated with their DEI policies.

O’Leary, who is also a Costco shareholder, weighed in on the wholesaler’s resistance.

“They’re nuts if they think I want them fighting the federal government on policy.”

“I don’t care who took that poll when there’s no way you’d get that result today,” he continued. “You don’t fight the attorney general in multiple states, you got to be out of your mind.”

“Shark Tank” investor Kevin O’Leary remarked how Costco fighting the government over DEI is “bad for business.” (Getty Images)

He also believes that it is “bad for business” and urged the retail company to find a resolution.

“Chop chop, guys. Figure this out,” O’Leary instructed. “You’re breaking the law. Get compliant. I mean, hire for merit and advance people that deserve it.”

“You will find every race, color, gender, everybody will come to the fore,” he added.

The businessman also commented on hiring practices, arguing that diversity can be achieved through a merit-based approach.

“[If] you just hire on merit as we do, you get tremendous diversity.”

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O’Leary expanded, arguing that it comes down to how capable a person is at doing their job.

“We don’t care if you’re gay or transvestite, or you have tattoos or fishhooks in your eyelids. We couldn’t give a damn. ‘Can you do the job, can you execute on the mandate?’ Those are the people we advance,” he stressed.

“If you can do it, I don’t care what planet you came from, you got a job, and that actually solves this whole problem.”

“We should have never got ourselves in this place,” O’Leary concluded.

READ MORE FROM FOX BUSINESS

RNC youth advisory council co-chair CJ Pearson reacts to President Donald Trump’s crackdown on diversity, equity and inclusion on ‘The Evening Edit.’

Fox News Digital’s Jamie Joseph contributed to this report.

February 1, 2025
Costco board members donated hundreds of thousands to Democrats in 2024 cycle

Storch Advisors CEO and former Toys”R”Us and Target executive Gerald Storch reacts to a strong November retail report and explains how industry winners are ‘value-based’ players.

Costco’s chairman of the board donated hundreds of thousands of dollars to Democrats in the last election cycle, and multiple other board members heavily donated to Democrats as well, according to data from the Federal Elections Commission.

The grocery wholesaler is grappling with a public backlash after the board overwhelmingly came out in favor of the company’s controversial DEI policies.

Chairman of the Board Hamilton E. James gave $100,000 to the Harris Action Fund in May 2023. Hamilton, who was formerly with the Blackstone group, donated $150,000 to the Harris Victory Fund in Oct. 2024, FEC data reveals.

The Costco chairman donated $250,000 to the Senate Majority PAC, a political action committee dedicated to electing Democrats to the Senate, and gave $100,000 to the House Majority Pac, which works to elect Democratic candidates to the House of Representatives, between Sept. and Oct. 2024.

COSTCO BOARD MEMBER DEFENDS DEI PRACTICES, REBUKES COMPANIES SCRAPPING POLICIES

Costco board members donated heavily to Democrats in the 2023-24 election cycle. (Justin Sullivan/Getty Images / Getty Images)

Hamilton, 73, donated $41,000 to the PAC for Rep. Hakeem Jeffries, D-N.Y., called the Jeffries Victory Fund in Sept. 2024, among numerous other Democratic PACs, federal data reveals, and made donations to numerous state Democratic parties and committees.

Costco board member and former CEO of the Bill and Melinda Gates Foundation, Jeff Raikes, appears to be one of the more prolific donors among the board, giving over $400,000 to Democratic candidates and causes in the last two years. On October 28, 2024, Raikes gave $25,000 to the Harris Victory Fund, just days before the presidential election. A month earlier, he gave $25,000 to the House Majority PAC.

Costco board member Kenneth Denman made numerous donations to left-wing candidates and groups as well. In the lead-up to the 2024 presidential election, Denman made two $2,500 donations to Harris for President in one week, on Oct. 20 and Oct. 26.

Sally Jewell, who has sat on Costco’s board since 2020 and served in the Obama administration as secretary of the interior, made 49 contributions in support of Democratic candidates between January 2023 and December 2024. She gave thousands to groups supporting the campaigns of Democrats across the country, including former Pennsylvania Sen. Bob Casey and former Montana Sen. Jon Tester.

Director Helena Buonanno Foulkes gave $3,300 to Harris for President and $3,500 to the Harris Victory Fund in August, and donated in support of Democratic Senators Amy Klobuchar, Tammy Baldwin, and Bob Casey. Foulkes is the niece of former Democratic Connecticut Sen. Christopher Dodd, and she made an unsuccessful bid for the Democratic nomination for governor of Rhode Island in 2022.

Of the Costco board members that Fox News Digital could independently verify, only John Stanton gave to Republican-aligned PACs. Stanton donated to PACs supporting Republican Sens. John Thune of South Dakota and Sen. John Barrasso of Wyoming, and he also contributed to Michigan Rep. John James. He also donated to a Washington Democrat, Rep. Adam Smith, last cycle.

None of the other board members appeared to have donated to Republicans or right-wing PACs. According to their website, Costco’s board currently consists of 11 members. The remaining members did not appear to make individual political donations in the 2024 cycle, or could not be verified to have done so, according to the FEC’s website.

COSTCO SHAREHOLDERS REJECT ANTI-DEI MEASURE

Costco board member Jeff Raikes has been an outspoken advocate for DEI. (Getty Images)

The significant left-wing political contributions among Costco’s board members come in light of a raging controversy over the wholesale grocer’s DEI policies. Nineteen state attorneys general urged the grocery wholesaler to drop DEI on Monday in light of President Donald Trump’s executive orders purging it from the federal government.

Raikes has been an outspoken supporter of DEI. In November 2024 he wrote, “Attacks on DEI aren’t just bad for business—they hurt our economy. A diverse workforce drives innovation, expands markets, and fuels growth. Let’s focus on building a future where all talent thrives,” in a post on X.

Larry Ellison, Executive Charmain Oracle listens to US President Donald Trump speak in the Roosevelt Room at the White House on January 21, 2025, in Washington, DC. (JIM WATSON/AFP via Getty Images / Getty Images)

Denman frequently reposts criticisms of Trump and praise for Democrats on his X and Bluesky accounts.

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The company’s founder, James Sinegal, who retired from his executive position in 2012, was a staunch supporter of the Democratic Party. He spoke at the Democratic National Convention in 2012 as a backer of President Barack Obama.

Fox News Digital reached out to the board members who donated in the 2024 election cycle and have yet to receive a response. Jewell, James, Stanton was unable to be reached.

January 29, 2025
Costco teamster workers set to strike this week as company embroiled in DEI controversy

Storch Advisors CEO and former Toys”R”Us and Target executive Gerald Storch reacts to a strong November retail report and explains how industry winners are ‘value-based’ players.

As Costco finds itself embroiled in a public battle over its controversial DEI policies, a much larger fight is looming with 18,000 store employees set to head to the picket lines if the grocery chain can’t agree to a new contract by Friday.

“If Costco actually respects its employees, it will give our 18,000 members the wages, benefits and work rules that they have been demanding for months,” a Teamsters spokesperson told Fox News Digital.

The grocery wholesaler, who has long held a pro-worker image, has been locked in a protracted battle with the Teamsters Union, which represents 18,000 of Costco’s 219,000 U.S. worker base. The Teamsters are accusing the grocery club of not sharing its record $7.4 billion profits with its workers. The Teamsters have accused Costco of engaging in “illegal and reckless behavior” including kicking union reps out of stores, preventing employees from wearing Teamster buttons and changing the locks on union bulletin boards.

STATE AGS WARN RETAIL GIANT COSTCO FOR DOUBLING DOWN ON ‘DISCRIMINATORY’ DEI

Around 18,000 Costco workers may go on strike Friday. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)

Talks finally broke down in January when Costco refused to reach a card check agreement. Card check is a process that would make it easier for workers to join unions by eliminating secret ballots. Eighty-five percent of Costco’s unionized employees voted to authorize a strike. The strike would affect 50 stores across the US in New York, New Jersey, Virginia and Washington.

As the Costco board voted overwhelmingly to reject an anti-DEI measure brought by activist investors at their shareholders meeting last Friday, workers rallied just outside their Washington offices – signaling the real fight was yet to come.

“Costco has two choices: respect the workers who made them a success or face a national strike. Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down,” Teamsters President Sean O’brien said in a statement.

WHY AN ACTIVIST INVESTOR SAYS THE BATTLE AGAINST COSTCO DEI REGIME ISN’T OVER

Costco is the first company known to have gone from $0 to $3 billion in sales in fewer than six years. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)

“What I can tell you is our contract with this company expires at midnight on Friday, and the reason Costco has made so much money over the past few years is its workers,” the Teamsters spokesperson told Fox News Digital.

Costco didn’t immediately respond to a request for comment.

The potential strike comes as 19 states’ attorneys general called on Costco to drop their DEI policies, writing that the grocery chain must “end all unlawful discrimination imposed by the company through diversity, equity, and inclusion,” in a letter sent to Costco CEO Ron Vachris.

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When asked if the Teamsters thought that the wholesaler was picking a public fight about DEI to deflect attention away from its labor dispute, their spokesperson told Fox News Digital “I can’t really speculate as to why Costco makes certain decisions.”

January 28, 2025
State AGs warn retail giant Costco for doubling down on ‘discriminatory’ DEI

Attorneys general in 19 states are warning Costco “to end all unlawful discrimination imposed by the company through diversity, equity, and inclusion” policies to reflect President Donald Trump’s recent executive order booting DEI out of federal agencies and warning private sectors to do the same.

“Racial discrimination is both immoral and illegal. Race-based employment hiring violates state and federal law, and as the chief law enforcement officer of Kansas, I intend to enforce the law vigorously,” Kansas Attorney General Kris Kobach told Fox News Digital in a statement.

Trump’s executive order, signed during his first week in office, will task the attorneys general with rooting out sectors and organizations that allegedly engage in discriminatory DEI practices. Recommendations will be made for potential lawsuits against violators.

REPUBLICAN STATE AGS AWAIT TRUMP-BROKERED TIKTOK DEAL, REMAIN SKEPTICAL ON APP SAFETY

Iowa Attorney General Brenna Bird and 18 other state AGs wrote a letter to Costco’s CEO to urge an end to the DEI policies within the company. (Getty Images)

The order encourages private-sector entities to align with federal civil rights laws and discontinue “discriminatory” practices. Publicly traded companies, large nonprofits, foundations with significant assets, bar and medical associations and higher education institutions with substantial endowments are potential targets for DEI investigations.

Trump also dissolved all DEI within the federal government. While big companies like Target, McDonald’s and Walmart backed off from their DEI policies, Costco shareholders voted last week to reject an anti-DEI proposal brought by activist shareholder group National Center for Public Policy Research. The measure would have required the wholesale grocery chain to issue a report on the risks associated with their DEI policies.

The Costco board said its “commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information,” according to reports.

TRUMP’S CRACKDOWN ON TRANS TROOPS: NEW ORDER NIXES PREFERRED PRONOUNS AND RESTRICTS FACILITY USE

Secretary of Defense Pete Hegseth announced he is ending all DEI programs and policies at the Pentagon. (AP Photo/Ben Curtis)

“It’s time to ditch DEI. While other companies right the ship and abandon their illegal, woke policies, Costco has doubled down,” Iowa Attorney General Brenna Bird told Fox News Digital in a statement. “I’m putting Costco on notice to do the right thing and eliminate discriminatory DEI. No American should be denied an opportunity because they don’t fit the woke mold.”

The Rev. Al Sharpton led a “buy in” at the Harlem Costco in support of the company rejecting a bid that challenged their corporate DEI policies. The MSNBC host said that he and 100 members of his National Action Network shopped at the store Sunday.

DEFENSE SECRETARY PETE HEGSETH SAYS ‘NO MORE DEI AT DEPARTMENT OF DEFENSE’: ‘NO EXCEPTIONS’

President Donald Trump speaks to reporters after signing a series of executive orders in the Oval Office on Jan. 23, 2025.

“Race-neutral practices, on the other hand, honor the founding ideals of this country,” reads the letter sent to Costco CEO Ron Vachris by the 19 attorneys general. “Now, the federal government is also focusing on ensuring invidious racebased discrimination no longer finds a home in woke corporations.”

The attorneys general want a response within the next 30 days to “either notify us that Costco has repealed its DEI policies or explain why Costco has failed to do so.”

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Attorneys general from Alabama, Arkansas, Georgia, Idaho, Kentucky, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, Louisiana, Missouri, Montana, Nebraska and North Dakota also signed the letter.

Fox News Digital reached out to Costco but did not hear back by the time of publication.

Fox News Digital’s David Spector contributed to this report.

Jamie Joseph is a writer who covers politics. She leads Fox News Digital coverage of the Senate.

January 27, 2025
Why an activist investor says the battle against Costco DEI regime isn’t over

Storch Advisors CEO and former Toys”R”Us and Target executive Gerald Storch reacts to a strong November retail report and explains how industry winners are ‘value-based’ players.

Costco shareholders may have overwhelmingly rejected a challenge to the company’s diversity, equity, and inclusion policies on Friday, but the activist investors leading the charge against the wholesaler club’s “woke” business practices say the fight is far from over.

“A board opposing a shareholder proposal is a typical and expected part of the shareholder proposal process– nearly every shareholder proposal, regardless of topic, is opposed by every board,” Ethan Peck deputy director for the National Center for Public Policy Research’s Free Enterprise Project (NCPR), told Fox News Digital.

The NCPR had made a bid for Costco executives to investigate the risks the company’s business posed to the company’s bottom line, but the grocery club chain’s board of directors unanimously came out against their effort.

COSTCO BOARD MEMBER DEFENDS DEI PRACTICES, REBUKES COMPANIES SCRAPPING POLICIES

Costco roundly rejected a challenge to its DEI policies. (Justin Sullivan/Getty Images / Getty Images)

“We owe our success to the more than 300,000 employees who serve our members every day. It is important that they all feel included and appreciated and that they transmit these values to our customers,” Costco Chairman Hamilton “Tony” James said at the shareholder meeting Friday. Ninety-eight percent of Costco’s shareholder voted against NCPR’s proposal.

However, Peck says that setbacks like this are normal, and predicts that Costco may go the way of Walmart, McDonald’s, Harley-Davidson and other companies that ditched DEI in the midst of President Donald Trump’s historic election win.

“Just months before Boeing dropped DEI, they opposed our shareholder proposal requesting an audit of their DEI efforts. So Costco doubling-down on DEI in the proxy statement is not as meaningful as has been made out to be,” Peck said.

COSTCO SHAREHOLDERS REJECT ANTI-DEI MEASURE

President Trump signed an executive order banning DEI from the federal government. (JIM WATSON/AFP via Getty Images / Getty Images)

“There’s still a decent chance that Costco drops DEI by the end of the year,” he added.

Costco is a high-profile holdout from the rising tide of companies rolling back or abandoning their DEI policies, which can include taking racial or gender considerations into hiring practice and workplace diversity trainings.

Costco board member Jeff Raikes, who formerly served as CEO of the Bill & Melinda Gates Foundation, has been a vocal supporter of DEI policies, and has written that businesses should “maximize” their DEI initiatives.

WHAT CAUSED THE REVOLT AGAINST DEI IN AMERICA?

The activists say that Costco may still ditch DEI by the end of the year. (Marlene Awaad/Bloomberg via Getty Images / Getty Images)

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“Attacks on DEI aren’t just bad for business—they hurt our economy. A diverse workforce drives innovation, expands markets, and fuels growth. Let’s focus on building a future where all talent thrives,” Raikes wrote in a Nov. 2024 post on X.

President Trump, who has issued executive orders banning DEI in the federal government, slammed DEI as “discriminatory” and “absolute nonsense” in his Davos speech Thursday.

Costco didn’t immediately respond to a request for comment.

January 27, 2025
Costco confirms monthlong rumor over new food court changes

Storch Advisors CEO and former Toys”R”Us and Target executive Gerald Storch reacts to a strong November retail report and explains how industry winners are ‘value-based’ players.

Costco has officially confirmed a month-long rumor that the wholesale club will officially swap out Pepsi for Coca-Cola products at its food courts, prompting excitement among some of its customers.

“This summer, we will be converting our food court fountain business back over to Coca-Cola,” Costco CEO Ron Vachris said during the company’s annual shareholders meeting on Thursday.

Rumors that Costco will swap out its fountain drinks were first reported last month by Costco Insider.

“After over a decade, Costco is switching back from Pepsi to Coke products in their stores,” Costco Insider said in a post on Instagram. “The change will bring Coke, Coke Zero and Diet Coke, as well as Sprite instead of Starry.”

COSTCO FOOD COURT CHATTER SUGGESTS SODA SWITCH COMING IN 2025: ‘SUPER HAPPY’

Customers fill cups with PepsiCo. Inc. brand beverages in the food court of a Costco store. Costco reportedly has had Pespi products at its food courts for decades. (Callaghan O’Hare/Bloomberg / Getty Images)

FOX Business reached out to Costco for comment, but they did not immediately respond.

The new change will reportedly undo a previous 2013 decision that swapped out the store’s Coca-Cola products for Pepsi.

COSTCO MUFFINS APPEAR TO BE CHANGING, RANKLING SOME CUSTOMERS ON REDDIT

Customers wait in line at Costco’s food courts. (Patrick T. Fallon / AFP / Getty Images)

According to Costco Insider, the 2013 switch was “a cost-saving measure to keep their famous $1.50 hot dog and soda combo.”

Costco’s hot dog prices, often praised for remaining so affordable over the years, reportedly haven’t changed since the 1980s.

COSTCO GIVES UPDATE ON $1.50 HOT DOG, SODA COMBO STAPLE

Costco switched from Coca-Cola to Pepsi products in 2013 as part of a cost-saving move, according to the website Costco Insider. (iStock / iStock)

Last year, CFO Gary Millerchip also reassured that Costco’s hot dog prices are expected to remain the same, Fox Business reported at the time.

“I also want to confirm the $1.50 hot dog price is safe,” Millerchip said during a quarterly earnings call last May.

Ticker Security Last Change Change %

COST COSTCO WHOLESALE CORP. 939.68 -2.48 -0.26%

While some Pepsi fans expressed their disappointment in the new swap, many customers shared their excitement about the prospect of Coke returning to the food courts.

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Matt West, editor of Costco Insider, told Fox News Digital last month that the publication took a poll among their followers, and “87% preferred Coke over Pepsi,“ suggesting that the wholesale’s customers were in favor of the change.

“This better not be a December fools prank so help me god,” one user wrote on a Reddit thread last month.

“I don’t even take the cup when I get the hot dog! I’ll be super happy if they go to Coca-Cola,” another Redditor posted.

January 26, 2025