How Costco’s $33-an-Hour Cashier Built a Million-Dollar Net Worth

Costco cashier Tony Barzar sets down his packed lunch in the break room, clocks in, and heads to the register. For nearly 40 years, this has been his daily routine. That day, like many others, 60-year-old Barzar was assigned to the self-checkout area, where six machines stood ready. At 9:02 a.m., the first customers approached the self-service kiosks. “Ma’am, right this way!” Barzar called out, gesturing to an open station. “Sir, how’s your day going? Did you find everything you needed?” he asked another customer, scanning gun in hand as he moved between registers.

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Employees like Barzar are Costco’s secret weapon. Company executives say these seasoned workers are reliable and experienced, helping customers check out quickly while mentoring new hires and passing on the company’s unique culture.

Barzar’s pay and benefits reflect his value to the company. He earns $32.90 per hour and has accumulated over $1 million in his 401(k) retirement account. His health insurance requires only a $15 copay for general visits and $25 for specialists—far below the U.S. average. In 2009, Barzar’s family bought a three-bedroom, two-bathroom home with a pool. Over the past decade, they’ve taken two trips to Europe.

“When I was younger, I never imagined my family and I would live like this,” he said. “I could retire if I wanted to, but what would I do? Costco has always treated me well.”

Tony Barzar has worked at Costco for 40 years. (Matt Martian for WSJ)

For decades, Costco has paid higher wages than most U.S. retailers to maintain low employee turnover. The company’s founders believed this strategy would reduce training costs and improve customer service. At Costco, the one-year employee retention rate is about 7%, a fraction of the industry average.

Research consistently shows that happy employees stay longer and deliver more satisfied customers. In a 2023 study, consulting firm McKinsey analyzed online reviews of over 100 retailers from both customers and employees. It found that retailers in the top 25% for employee satisfaction were more than twice as likely to rank in the top 25% for customer satisfaction.

The report stated: “The happiest employees not only spread positive emotions to customers, but also perform better in their roles.” McKinsey also estimated that each frontline retail employee who leaves costs a company an average of $10,000.

In recent years, many Costco stores have created a formal role called “culture coach” for veteran hourly employees like Barzar. This allows them to serve as official mentors, even if they aren’t managers, more clearly leveraging their experience to train new hires. Costco has also raised the maximum hourly wage for hourly workers from $31.90 to $32.90, increased annual bonuses, and added an extra week of vacation for employees with 30 years of service.

Tony Barzar has worked at Costco for 40 years. (Matt Martian for WSJ)

Costco’s strong effort to retain hourly workers for long tenures—even those like Barzar who don’t seek promotions—runs counter to how many employers view their workforce. Senior employees typically cost more, and those uninterested in advancement are sometimes seen as less valuable to the organization.

While generous benefits attract workers, they also enable some to retire earlier than Costco might prefer, thanks to substantial savings.

“That’s great for them, but we’d still like to keep them,” said Travis Maze, store manager at the Tucson location for eight years. He acknowledged that when veteran employees leave, the average wage of the store’s 380 workers drops, which helps profits, “but at the cost of losing valuable experience.” He added, “The more new hires we have, the more our core culture gets diluted.”

Gary Millerchip, Costco’s chief financial officer, said in the U.S., there are “thousands” of hourly employees whose 401(k) balances exceed $1 million. He noted that the company’s investment in employees means they stay long-term and retire on their own terms, but “right behind them, a new cohort is coming in and building the same level of experience.” In the long run, he added, this model is actually less costly.

Costco’s annual sales have grown for nearly 20 consecutive years. During that period, its stock price has surged over 2,000%, rising from a post-2008 recession low of around $40 to about $953 on a recent Wednesday.

A sign reminds Costco employees of the retailer’s “Member Service Standards.” (Matt Martian for WSJ)

When training managers, Costco instructs them to treat cashiers as experts. These experienced workers can enhance members’ shopping experiences through fast checkouts and friendly conversations—or undermine them if performance lags. The fastest traditional cashiers can serve about 70 customers per hour, with the average around 57. Internal data shows self-checkout is slower, but employees and executives say some customers still prefer it.

Barzar’s career at Costco reflects the company’s retention strategy. After briefly attending community college, he worked at a local grocery store. A friend told him that Price Club, Costco’s predecessor, was a good place to work. In 1986, Barzar applied for a job collecting shopping carts in the parking lot at the Tucson store. He said his starting wage was $5.85 per hour, higher than the $3.00 he earned at the grocery store.

Price Club was one of the early membership-based warehouse retail concepts founded by retail legend Sol Price. Costco acquired the chain in 1993 and transitioned its pension plan to a 401(k). Barzar said he began contributing a portion of his paycheck to the account managed by T. Rowe Price from that point on.

A few years later, Barzar requested a transfer to a cooler indoor environment. He became an early shift stocker, unloading trucks and labeling boxes with a tag gun. Five years later, “the early shift started to wear on me,” Barzar said. With his first child born, he wanted a more regular schedule. He moved to the front door, counting and greeting incoming customers, then transitioned to cashier. His hourly wage rose to about $10.

He stayed in the role. He enjoyed cashiering and talking with customers.

Barzar greets a longtime customer he’s known for 20 years. (Matt Martian for WSJ)

Barzar considered other jobs. He said in his 20s, he applied multiple times to become a firefighter, following in his brother’s footsteps, but failed the entrance exam. The disappointment was softened by Costco’s strong growth at the time. “It gave me a gut feeling: Don’t leave, stay and grow with the company,” he said.

Barzar admitted he stayed for the pay and benefits. Early last year, two events made the value of that security painfully clear: first, his son-in-law died by suicide; then, months later, his wife of 26 years was diagnosed with stage-three brain cancer. His wife had worked in Costco’s bakery department. Fortunately, Costco’s health insurance covered the full cost of her three brain surgeries. Barzar took nearly a year of paid leave to care for his family. He said he also used the company’s counseling benefits to process his grief, deepening his appreciation for the comprehensive coverage.

“It’s not until tragedy strikes that you truly understand how valuable that security is,” he said.

Earlier this year, he returned to work part-time, with no reduction in pay.

Erik Fila, front-end supervisor, said Barzar is an excellent self-checkout employee because he’s outgoing, detail-oriented, and loud.

Every 30 minutes or so, front-end supervisors like Fila receive data on the number of membership cards scanned at the entrance. They use this to estimate how many customers will reach the checkout lanes in the next half hour.

By 9:30 a.m., 157 membership cards had been scanned. By 10 a.m., that number reached 337.

Barzar’s comfortable black Hoka sneakers come in handy as he moves quickly between self-checkout stations, scanning gun in hand.