In a move shortly after raising its membership fees, Costco, the world’s largest chain of membership-based warehouse clubs, recently announced price cuts on several popular Kirkland Signature private-label products during its fourth-quarter financial report conference call.
The Chief Financial Officer of Costco, Gary Millerchip, stated during the conference call last Thursday (September 26) that the company’s commitment to sustainable investments has allowed it to lower costs, and subsequently reduce prices for customers.
Among the price reductions announced, the boneless chicken breasts under the Kirkland Signature brand saw a significant 13% price drop, leading to a 21% increase in sales. Other products with reduced prices include:
– Standard foil, reduced from $31.99 to $29.99
– Macadamia nuts, reduced from $18.99 to $13.99
– 3-liter Spanish olive oil, reduced from $38.99 to $34.99
– 2-pack of baguettes, reduced from $5.99 to $4.99
– Laundry packs, reduced from $19.99 to $18.99
Millerchip reported that the price reductions are not limited to the United States, mentioning that Costco in Japan has lowered the price of toilet paper by 30% as the company produces it for the Asian market.
Despite the recent increase in membership fees at Costco, by purchasing discounted items, especially frequently bought products, Costco members can still save on their everyday essentials.
Amid continuing inflation and rising prices, Millerchip stated, “We want to be the first to lower prices and the last to raise prices.”
In September 2024, Costco raised the annual fee for its regular Gold Star members in the United States and Canada from $60 to $65, marking the first adjustment since 2017. The fee for the Executive membership card also increased from $120 to $130. This fee increase affected approximately 52 million members in the U.S. and Canada.
Despite the increase in membership fees, Costco’s report shows an increase in membership income, reaching $1.512 billion. Notably, according to Millerchip, about half of the new members in the 2024 fiscal year are under the age of 40, and the number of Executive members has grown by 9.7% compared to the same period last year.
Costco last adjusted its membership fees in June 2017.
As the world’s largest chain of membership-based warehouse clubs, Costco offers members various benefits, including free samples, food, gasoline, home insurance, travel discounts, and grocery products.
(This article references reports from USA Today and Fox News)