• Costco is bringing back a key perk for shoppers in its higher-priced membership tier.
• Starting June 30, executive members will be able to shop an hour earlier than Gold Star members.
• Slightly less than half of Costco members pay for the executive tier, but they represent 73% of sales.

A big perk is coming to Costco's higher-priced membership tier.

The warehouse club said it would begin allowing executive members in the US to shop an hour earlier than standard members starting June 30, according to an email to employees seen by Business Insider.

"Our Executive Members are our most loyal members, and we want to reward them for their commitment to Costco," the email said.

Costco did not immediately respond to a request for comment from Business Insider.

Executive members were previously offered extended shopping hours at some locations, but the perk was phased out in recent years, Costco Insider reported.

The company also said in the email that executive members would start receiving a $10 monthly credit for Instacart orders and $150 worth of other benefits and savings on Costco services.

Costco's higher-priced membership comes with several benefits, including 2% rewards on purchases.

Slightly fewer than half of Costco members are executive-tier, which costs twice as much as the standard $65-a-year level, called Gold Star. Executive members account for more than 73% of the company's total sales, according to the company.

Improving the attractiveness of the executive upgrade could help Costco boost membership fee revenue and drive higher sales. It might also alleviate traffic that has been a challenge for some stores.

Costco has also been testing earlier hours at its gas stations for all members. The company said during its May earnings call that the impact on sales has been positive so far.

• Millions of US households will soon be able to try drone delivery as Walmart and Wing expand access.
• The service is coming to 100 more stores across several Southeast metro areas.
• Wing says thousands of customers use the service each week to purchase items they need fast.

Baby wipes and eggs.

Those are two of the top products Wing CEO Adam Woodworth says Walmart shoppers commonly order using his company's drone delivery service.

"The baby wipes one makes total sense to me," he told Business Insider. "It's a problem when you run out."

The reason for eggs' popularity was less obvious to him until he realized customers were most likely testing the technology's handling.

"If you can get eggs delivered and they show up and they're not cracked, you can get pretty much anything delivered," Woodworth said.

Millions more households will soon be able to try drone delivery, as Walmart and Wing announce their largest expansion yet.

The companies said Thursday that they are bringing the service to 100 more US stores across metro areas, including Atlanta, Charlotte, Houston, Orlando, and Tampa. They're also expanding in the Dallas-Fort Worth market, where the tech has been live for the past year and a half.

Woodworth said drone delivery is proving popular in the areas where it is widely available. Thousands of customers are turning to the service each week to purchase everyday items like groceries or household supplies.

"You're cooking dinner and you realize that the recipe called for scallions and you forgot to get them at the store," he said. (Walmart CEO Doug McMillon previously said he used the service to order last-minute cooking wine for dinner without leaving the couch.)

Wing's drones have a payload of five pounds, which means they can carry about half of the 120,000 items typically found at a Walmart Supercenter. In other words, not a gallon of milk, which weighs eight pounds, but a quart to get you through the morning rush.

Wing said the average delivery time is under 19 minutes. Woodworth said the company wants to get that down to 15.

"Something where it would be way faster to get it delivered than to jump in your car and go drive to the store," he said.

(For the parents waiting on baby wipes, that's about two episodes of "Bluey.")

Americans have harbored their suspicions about delivery drones zipping around overhead (some have even shot at them, which is a felony). Woodworth said Wing does demos to get communities more comfortable with the idea.

"The immediate reaction is that negative one," he said. "But over time, the questions go from the negative to 'Okay, well, when is it going to come to my house?'"

• Walmart says tariffs remain "too high," even after recent reductions.
• The company said it would have to raise some prices if import costs didn't come down further.
• It's not yet clear how already-pressured shoppers would respond to price hikes.

President Donald Trump's shifting trade policy is causing headaches for America's largest retailer.

While Walmart CFO John David Rainey welcomed the recent reduction in tariffs, he said the company was not out of the woods yet.

"Let me emphasize, we still think that's too high," he said of the latest rates during Walmart's earnings call on Thursday.

Walmart says it imports about one-third of what it sells in the US from other countries, namely China, Mexico, Canada, Vietnam, and India, and that cargo is flowing.

"There are certain items, certain categories of merchandise, that we're dependent upon to import from other countries, and prices of those things are likely going to go up, and that's not good for consumers," Rainey said.

Rainey added that shoppers were showing signs of being more financially pressured, evidenced by their spending shifting away from general merchandise and more toward food and essentials.

Walmart CEO Doug McMillon added that he didn't think shoppers would tolerate additional price hikes on their grocery bills, which would limit the retailer's ability to shift import costs to other goods in its assortment.

"The first thing that goes through my mind is food inflation," he said. "We've been through a number of years here where prices have gone up on food, and our customers have felt that, and they don't want any more food inflation."

He also said he was hopeful that any long-term policy would address foods that the US doesn't produce in significant amounts, like bananas.

An additional wrinkle for Walmart management is the question of what economists call "price elasticity," or the change in purchasing patterns in response to changes in cost.

American consumers proved resilient during recent years of high inflation and kept on spending even though prices were climbing.

But Rainey said tariffs make it "more challenging to anticipate demand by item," since it's not clear how shoppers would respond to new tariff-related price hikes and retailers are wary of getting stuck holding large amounts of expensive merchandise.

"We'll watch where our price gaps are," McMillon said, "but we'll also watch what customers are telling us and the response that we get from pressure that they're feeling."

While that puzzle is a little more solvable with high-turnover items like food, it's considerably more difficult to predict for seasonal sales events like back-to-school shopping or the holidays — and Walmart has to place those orders now.

And thanks to a quirk of retail accounting, a significant fluctuation in shelf prices could have an outsize impact on the company's financial results in the coming quarters if it has to make large adjustments to its inventory valuation.

"How do you make a quantity call, and what tariff number do you use?" McMillon said.

• A US labor judge has decided against Costco in a matter involving worker confidentiality agreements.
• The case involves a worker who had to agree not to discuss an internal sexual harassment investigation.
• The NLRB argued that Costco's policy "appears to instead protect the harasser."

Costco's policies surrounding internal investigations are under scrutiny for being "overly broad" and in violation of employees' rights.

On Monday, US National Labor Relations Board judge Andrew Gollin decided against Costco in a matter involving the confidentiality agreements that workers are expected to sign when raising issues with management.

The specific case was brought on behalf of Jessica Georg, who in 2022 used Costco's "Open Door" policy to file an internal complaint that she was sexually harassed by a co-worker, according to filings.

As part of the process, Georg was required to sign a confidentiality agreement that barred her from discussing the open matter with coworkers. She later received a letter from Costco that said the employee was fired, the case was closed, and that "we hope and expect" that the information would continue to remain confidential, according to filings.

The NLRB and Georg each declined to comment for this story, and neither Costco nor its attorney responded to Business Insider's request.

In a briefing, Costco's lawyer Paul Galligan argued that the confidentiality rules are intended to protect the integrity of the investigation and are in the shared interest of the company and workers.

"It helps employees to be candid in their statements knowing that their statements will be treated confidentiality. It is probably more critical in an industry like retail where employees work closely together," Galligan said.

He also said in the briefing the rules aren't intended to dissuade employees from discussing things like wages, working conditions, or forming a union.

But Costco's investigation found that the individual about whom Georg complained also had several prior complaints filed against him, and Georg later testified she felt she or her coworkers with similar experiences felt they might be risking their jobs if they shared information about alleged patterns of behavior by an individual employee about whom they had raised concerns.

A more tailored confidentiality agreement could still protect sensitive information while still assuring workers of their rights to protect themselves against harassment, the NLRB attorneys said in a brief.

The NLRB attorneys argued that Costco's policy "appears to instead protect the harasser who has had individual complaints dismissed over and over, because no one outside the investigator is privy to the serial nature of the harassment."

Costco's lawyer argued that the company's employee handbook explains that the confidentiality requirement is not intended to discourage workers from exercising their rights. The NLRB argued, and the judge agreed, that having workers sign a separate form (as was the case here) could reasonably cause confusion for a typical worker and lead them to fear for their job.

Part of Judge Gollin's proposed remedy is that Costco post a notice in the one warehouse where the violation occurred, since the NLRB did not prove conclusively that similar confidentiality forms were used at all of the company's US locations.

The case now heads to the NLRB's board, with exceptions to the decision due by June 2.

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