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Costco price hike: Popular items see unexpected price hikes

Rampant price increases have become all too common for consumers, and Costco is generally a haven for savvy shoppers because of its bulk purchasing and competitive pricing.

However, the retailer recently increased prices on some of its popular products.

For example, while most Costco warehouses have gas stations that are priced lower than their competitors in that area, the company has quietly raised its gas prices. Costco gas tends to be 30 to 50 cents cheaper than other gas stations, according to GoBankingRates, which is based on prices listed by the GasBuddy app.

Eat This, Not That (ETNT) reported that shoppers in the United States and Canada have seen notable price increases on Kirkland Signature organic extra virgin olive oil. At one store in Brooklyn, the price of oil increased from $16.99 in March 2023 to $24.99 this year, according to ETNT.

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Membership fees, according to reports, could see a slight hike. During the chain’s first-quarter earnings call, former Costco CFO Richard Galanti hinted at a price increase for the company’s popular CostcoGold and Executive memberships; This is the first time membership has increased since 2017. The increase could be between $5 and $10. The company announced that the total number of cardholders increased to 132 million at the end of the second quarter, an increase of 7.3% compared to the same period last year.

Galanti added that gasoline profitability has improved, however, and the club has been able to increase prices based on the market, according to The Street.

“What we’ve seen is we’ve been able to see an improvement in profitability, not just over the last quarter or two, but over the last few years, the last three to five years, an improvement in gas profitability because others make more, and we “We’re allowed to earn a little more,” Galanti said.

“When we competitively price our gasoline purchases, which we do every week at every gas station we operate with neighboring competing gas stations, our value proposition is actually increased – a number of cents per gallon higher than we’ve ever seen,” he said. . “So it’s been, if you will, a win-win situation for us.”

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However, Galanti said during the earnings conference call that some items like furniture and other larger, cheaper items may start to decline due to reduced transportation costs, The Street reports.

“There were some deflationary elements that were as high as 20 to 30 percent, and again, they were mostly freight-related,” he said.

Meanwhile, Galanti said the $1.50 cost of the warehouse retailer’s hot dog and soda combo “is probably safe for a while.”

The hot dog and soda combo has long been a fixture in Costco’s food court, as has its $1.50 price tag. The company has not increased the cost of the combo in the roughly four decades it has offered it, thanks to the commitment of its founders, FOX Business previously reported.

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Separately, Fox Business reported last month that the retailer is now selling kimbap, a sushi-like dish, at competitive prices. It consists of rice and various ingredients wrapped in seaweed. The item has been a popular feature at Trader Joe’s, often selling out.

“You get 6 kimbap for $18, making it slightly cheaper than TJ’s,” one Reddit user wrote under the Costco thread. “Solid 8/10. We’ll definitely pick it up once it’s back in stock.”

News Source : www.foxbusiness.com
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