What is the Costco $20 rule and when does it rise?

The Costco $20 rule set a company-wide minimum of 20 per hour. It increases to 21 next month and adds another 1 in March 2027. Average hourly pay across North America is about 31, reflecting tenure and premiums beyond the floor. This staged path helps plan payroll and retention.

Will the wage hike raise Costco prices in Canada?

Any price impact should be limited. Costco’s membership fees, high traffic, and fast turns help offset higher payroll. Management can lean on mix and Kirkland to protect value. Expect targeted adjustments rather than broad increases, provided comps and renewal rates stay healthy through the next few quarters.

Is COST stock attractive for Canadians after the wage news?

COST stock trades at a high P/E, so execution matters. The wage step is manageable if traffic and renewals remain strong. Meyka’s grade is A with a BUY suggestion, while some models flag valuation risk. Consider entries on weakness and reassess after the March 5, 2026 earnings update.

What should investors track next quarter?

Focus on SG&A as a percent of sales, operating margin, traffic, renewal rates, and comments on wage accruals. Watch inventory turns, membership growth, and capex plans. Technicals like RSI and ADX can aid timing, but fundamentals will drive whether wages dilute margins or productivity offsets them.

How do peers like Target and Lowe’s compare on labour dynamics?

Big-box peers also face rising wages, but Costco’s membership model and low SG&A ratio help absorb costs differently. Target and Lowe’s rely more on merchandising spread, while Costco leans on renewal income and fast turns. The upcoming wage steps will test each model’s ability to hold margins.

Global Market Insights

COST Stock Today: February 11 – Wage Floor Lifts to $21 Next Month

ByHuzaifa Zahoor February 11, 2026February 11, 2026

The Costco $20 rule is set to step up to $21 next month, with another lift in March 2027. For Canadian investors, this Costco wage increase spotlights retail labor costs and how they flow through SG&A, pricing, and margins. Average hourly pay across North America sits near 31 per hour. We break down what this means for COST stock, why margins may hold, and what data to watch into earnings on March 5, 2026.