According to a recent report from research firm Moody’s Analytics, the top 10% of U.S. earners (with household incomes of $250,000 and up) now account for almost 50% of all spending…
— from “Why Costco is targeting the rich, with deals on Rolexes, 10-carat diamonds, and gold bars”, in Fast Company magazine, February 28, 2025.
We all love to buy stuff at discount prices. Even the rich and famous, apparently.
According to journalist Rob Walker, writing for Fast Company magazine, Costco stores are now targeting our wealthiest neighbors with great deals on all kinds of luxury items.
I’m using the term “our wealthiest neighbors” loosely, because none of my actual neighbors are wealthy, as far as I can tell. Judging by the condition of their homes and vehicles, I mean. (Not that I’m necessarily doing any better…)
Costco chair Hamilton “Tony” James caused a bit of a stir this week when, in an interview, he mentioned a retail category that’s done surprisingly well for the big-box chain: luxury goods. “Rolex watches, Dom Pérignon, 10-carat diamonds,” James offered as examples of high-end products and brands that have fit into a discount-club model more typically associated with buying staples in bulk. “Affluent people,” he explained, “love a good deal.”=
We do indeed have wealthy people here in Pagosa Springs. What we don’t have is a Costco. Or anyone selling Rolex watches, for that matter.
Reportedly, a Porsche dealer in Seattle put their cars on the floor of a Costco, and they sold out in a week. Affluent people love a good deal, according to Costco chair Tony James. The rich are just like the rest of us. Except, different.
And at the rate things are going lately, the rich are going to be the only people with any money left to spend.
The rest of us don’t have money, but we have credit cards.
a href=”https://www.nbcnews.com/business/personal-finance/credit-card-debt-rising-in-america-why-which-consumers-affected-rcna192672″ target=”_blank”>
If you want to feel good about America, you probably want to avoid NBC News. They’re prone to publishing stories like, “As consumer delinquencies rise, U.S. economic growth increasingly powered by the wealthy”, by reporter Rob Wile.
Unfortunately, I went looking for a graph of credit card debt and ended up reading the NBC News article. Big mistake.
It’s one thing to read articles about rich people finding good deals at Costco. It’s something totally different to learn that my actual neighbors are paying 20% interest on their credit cards and many of them can’t even make the minimum payment. (Not that I’m necessarily doing any better…)
Probably, it was a mistake to even look for a graph about credit card debt. What was I thinking? That graph makes it look like we’re headed for another 2008-style ‘Great Recession’ and financial meltdown.
Of course, if we did have a meltdown, the price of Rolex watches might come down. That would be one good thing.
And eggs? Maybe the price of eggs would come down? That would be another good thing.
I saw a story here in the Daily Post, yesterday, about the USDA possibly spending $1 billion to address the bird flu.
Agriculture Secretary Brooke Rollins is “confident” that the firing of probationary federal employees and efforts won’t negatively affect USDA.
“As we look to streamline and make more efficient the U.S. Department of Agriculture, will we have the resources needed to address the plan I just laid out?” she said. “We are convinced that we will, as we realign and evaluate where USDA has been spending money, where our employees are spending their time.”
Not spending their time shopping a Costco, hopefully.