COSTCO's reply to  UARF's Letter

July 10, 2014

Over the past two days, a number of press reports have created a controversy surrounding Costco's decision to pull from sale the book, "America, Imagine a World Without Her", a controversy that we believe is completely unwarranted. Unfortunately, in this time of extreme views…both left and right of the "political aisle"…such controversy has been exacerbated, in part due to the portrayal by some, of the facts surrounding the Company's decision to pull this book from sale.

Here are the facts:

1. The book in question was brought into 249 Costco locations throughout the United States on or about June 1.
    

2. Sales during the month of June and into the first few days of July, totaled 3,753 units, or approximately 15 books per Costco location.
    

3. Consistent with the policy of our book department for thirty years, and based solely on the small number of copies sold during the four-to-five week period, our buyer, on July 1, communicated to the warehouse locations that the book be pulled from sale, and returned to the distributor by July 15. Costco is not a book store. Our book shelf space is very limited. We exercise discipline in the best utilization of that limited space based solely on what our members are buying. We can't carry every title that our members are interested in reading. We are constantly monitoring book sales, and make decisions to pull books off the shelves frequently based on sales volume to make room for other titles. Politics, or controversy over content, do not influence our decisions.
    

4. While some press articles, blogs, television and cable programs, etc. have suggested that Costco's decision to pull this book was politically motivated, perhaps due to the political views of certain members of senior management, nothing could be further from the truth. Two of the Company's policies since its inception in 1983 are simple and straightforward:

   • Politics, or political controversy over content, do not influence our decision to sell, or not sell, a given book.
      

   • Costco does not make contributions to political candidates or parties…left, center, right or other…period! Costco does not have a political action committee.
      

5. The political views of Costco's senior management team, Costco's Board of Directors, and Costco's more than 127,000 U.S. employees are varied, and span the entire range of views. While the two company policies mentioned above are clear and unambiguous, we live in America; and we respect the rights of each and every individual to personally support whatever views he or she may have; but we will not allow political beliefs to affect the products we choose to sell.
    

6. Some have suggested that Costco timed the pulling from sale the book in question to align with the July 2 opening of the book's companion movie. This is unequivocally not true. The book was brought in to Costco to sell. It didn't sell well. In retrospect, we probably should have waited for the movie to be released to see what sales impact it would have. Given yesterday's dramatic sales increase in the book - perhaps due in part to the surrounding controversy - we have chosen to bring back the book.
    

Costco prides itself in the trust and member loyalty earned over the past thirty years. Costco is also proud that our more than 127,000 U.S. employees, and 189,000 employees worldwide, are the best in retail, and are able to earn wages and benefits that far exceed every other major hourly retailer.

Some in the press will continue to "fan the flames." That's what they do. At Costco, we have earned our members' and our employees' trust over the past thirty years by bringing to our members the best quality goods and services at the lowest possible prices; by taking care of our employees; and by being principled and doing what is right. We will continue operating our business in this way. It's what makes us who we are.

Thank you,

Craig Jelinek
CEO

To see UARF's letter to COSTCO