AmEx Plans Higher Spending to Recover From Loss of Costco Deal

American Express Co. plans to open its pocketbook to make up for the loss of its partnership with Costco Wholesale Corp.

AmEx will end its co-branded credit-card agreement with Costco next year after the two companies failed to reach a new deal that made economic sense, the New York-based lender said Thursday. To compensate, AmEx will expand other parts of the business while spending money on marketing and rewards programs to convince Costco shoppers to keep using its card at other stores, Chief Executive Officer Kenneth I. Chenault said.