Over the last year, we’ve all had to deal with inflation. We’ve seen prices skyrocket across the board.
Many retailers have had to raise their prices. But there is a little sliver of hope for those who love Costco. The chain has plans to try and keep some of its prices down. For example, regarding their annual membership – Costco has plans to keep its prices the same and not raise them.
That means that their standard membership will stay $60 per year, and their executive level will also remain at its usual $120 per year.
According to CNBC, a quarterly report showed that Costco’s earnings superseded the expected earnings.
The company typically won’t raise its membership fees except every 5 to 7 years, and the last time they raised prices was back in 2017. According to CNBC, Costco’s CFO, Richard Galanti, said that the company hadn’t met the standard it uses when deciding whether or not to raise membership prices.
Sam’s Club, which is Costco’s biggest rival, has raised its annual membership fee. But, in general, a Sam’s Club membership is still cheaper. Beginning in October, if you’re a Sam’s Club member, you can expect to see prices go up $5, taking an annual membership from $45 to $50. Sam’s Club is owned by Walmart, and this is its first fee increase in nine years.
But just because Costco hasn’t increased its membership fees, doesn’t mean that they’ve escaped inflation unscathed. You’ll probably notice some changes at their food court. However, their famous hot dogs and soda will stay at the price of $1.50 for now. Galanti had no plans to change the cost of this customer favorite super deal for the company’s fourth-quarter earnings.
It was questioned whether Costco’s price adjustments in other areas were a way to maintain sales margins for its hot dog-and-soda deal and other value purchases.
According to CNBC, Galanti replied, “Those things help us be more aggressive in other areas, or as you mentioned, hold the price on the hot dog and the soda a little longer – forever.”
Overall, Galanti estimated the rate of inflation at Costco was about 8% during their fourth quarter, with the increased prices “a little higher on the food and sundries side.”SKM: below-content placeholder