Costco Wholesale Corporation Updates on Children’s Sleepers

Costco Wholesale is committed to protecting workers in its supply chains. In furtherance of this commitment, the Company confirms that it has acted appropriately relative to children’s sleepers that have been referenced in the media.

The sleepers that had been on sale at Costco until very recently were sourced from factories outside the Xinjiang region and without connection to the entity that was recently named as the subject of a detention order by the Customs and Border Patrol. Those factories were the subject of favorable audits for labor practices and have not been accused of wrongdoing.

Costco’s supplier also sourced sleepers from a factory in Xinjiang, but Costco has not received any of those sleepers. That factory, too, was the subject of favorable audits that showed the absence of forced labor and other favorable results.

Although Costco has no reason to believe that any sleeper in its inventory was inappropriately sourced, out of an abundance of caution it has suspended sales pending further investigation and developments.