Organized Money Costco's Private Equity Headache
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Jul 22, 2025 Steve Hunt, a Costco customer service worker and former Oklahoma City mayoral candidate, uncovers how private equity takeovers are impacting product quality and customer service at Costco. He shares his firsthand experiences navigating the corporate landscape, revealing how cost-cutting measures by private equity firms are eroding trust and enjoyment for customers. The conversation delves into the broader implications of these practices, highlighting the contrast between Costco's reputation and the reality of vendor relationships, ultimately calling for greater corporate accountability.
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Rapid Decline After PE Takeover
- Primo Brands, a water delivery vendor for Costco, quickly degraded service after a private equity takeover.
- Customer service centers were shut down rapidly, causing an immediate spike in complaints and poor service.
Private Equity Hurts Efficiency
- Private equity nationalizes industries claiming efficiency but often degrades customer service.
- The complex outsourcing chains create inefficiencies and degrade quality for consumers.
Explaining PE Impact to Customers
- Costco customer service tells customers upfront when private equity has worsened vendor support.
- Many customers empathize with the situation and understand the private equity impact on service.