The Journal.
The Journal.

Aug 18, 2026 · 18 min

Costco turns good hourly jobs into a business advantage

He's Been a Costco Cashier for 40 Years. Now He's a Millionaire.

The episode examines whether generous pay and benefits can make frontline work financially secure while strengthening a retailer’s long-term performance.

3 key takeaways
  1. 1Tony Barzar’s four decades at Costco show how pay, benefits, and disciplined saving can transform an hourly career.
  2. 2Costco’s loyal workforce can improve service, membership renewals, and business performance enough to offset higher labor costs.
  3. 3The model faces real risks, including expensive compensation, early retirements, and the difficulty of reproducing Costco’s culture elsewhere.

Don't miss

Tony Barzar describes how Costco’s paid leave, health insurance, and therapy coverage supported his family through a death and serious cancer diagnosis.

The brief

Tony Barzar has spent 40 years as a Costco cashier in Tucson, building financial security through strong compensation, benefits, and disciplined retirement saving.

Sarah Nassauer traces Costco’s labor strategy to Saul Price’s belief that better pay creates a cycle of stronger hiring, employee loyalty, and customer service.

Tony’s expertise on the warehouse floor helps explain the model’s customer-facing payoff: speed, familiarity, and relationships that support Costco’s membership business.

During a family health crisis, paid leave, health insurance, and therapy coverage let Tony take nearly a year off without financial ruin.

The strategy is not cost-free: generous compensation can pressure results, and other retailers may struggle to copy a culture built through decades of consistency.

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Costco turns good hourly jobs into a business advantage | PodLume