What: A piece from The Economist on the reasons why Costco is faring so well in terms of bottom line.

Why it is important: 2 notions - private paid membership and private labels - are described to be key success factors.

Costco's success is attributed to its low-margin, membership-based business model, offering high-quality products at the lowest prices, and a limited selection of items to enhance buying power and quality focus. Its membership fees significantly contribute to operating profits, with a high renewal rate indicating customer loyalty. Costco's efficient inventory turnover and expansion of its Kirkland Signature brand further boost its financial health. Additionally, Costco's exceptional employee treatment, with above-industry wages and low turnover, underscores its operational excellence and future growth prospects.

Why Costco is so loved