Costco’s impact on local economies, known as the Costco Effect, leads to businesses raising wages up to 40% more in an effort to compete with Costco’s high wages for employees. This contrasts sharply with the Walmart Effect, where Walmart’s presence can have negative effects on local economies, including pushing wages down.

Surrounding businesses near Costco locations see a significant increase in foot traffic and revenue, attributing their success to the influx of customers drawn to Costco. The Costco Effect also leads to higher prices for local businesses, allowing them to offset the cost of raising wages and increase profits.

Costco’s ability to attract customers and boost local businesses has created a positive reputation for the retailer. This effect also reduces turnover rates and training expenses for Costco, while local businesses benefit from increased wages and higher prices. Costco’s impact on communities stands out as a positive force in retail.

The Costco Effect illustrates how new Costco stores positively transform local economies, showcasing how surrounding businesses can raise wages up to 40% more to compete. This phenomenon highlights Costco’s unique approach to driving economic growth in the communities it serves. 1. The US economy added 943,000 jobs in July, surpassing expectations and marking the biggest job gains in nearly a year. The unemployment rate also dropped to 5.4%, its lowest level since the start of the pandemic.

2. Pfizer and Moderna report strong earnings as demand for COVID-19 vaccines remains high. Both companies have raised their revenue forecasts for the year, citing ongoing vaccine sales and booster shot orders.

3. The Tokyo Olympics come to a close with the United States finishing on top of the medal table with a total of 113 medals, including 39 gold. The Games faced numerous challenges due to COVID-19 restrictions but were ultimately successful.

4. Wildfires continue to ravage parts of California, Oregon, and other western states, with thousands of acres burned and homes destroyed. Firefighters are working tirelessly to contain the blazes, but dry conditions and high temperatures pose challenges.

Read more at Yahoo Finance: ‘Surrounding Businesses Raise Wages Up To 40% More’