Price cuts are coming to a Costco near you!
Good News: Costco Is Cutting Prices on Popular Kirkland Items
Published on Oct. 15, 2024
No matter where you do your grocery shopping, you’ve likely noticed prices creeping up over the past few years. Inflation affects all of us—even Costco shoppers have faced price hikes. In September, the wholesale club increased its annual membership fees for the first time in seven years. To shop at the big-box store, you’ll have to fork over an extra $5 to $10 a year, depending on your Costco membership type.
Ready for some good news? Not all changes mean higher prices. Case in point: Costco’s latest price cuts. The changes could ultimately mean bigger savings on all of your favorite Costco products. So keep reading to find out why Costco is cutting prices and which items are affected.
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Which products did Costco slash prices on?
In a quarterly earnings call at the end of September, Costco’s chief financial officer, Gary Millerchip, announced price drops on several Kirkland Signature brand products.
The next time you shop at Costco, expect price cuts on must-buy Costco items including:
- Kirkland Signature Standard Foil: Reduced from $31.99 to $29.99
- Kirkland Signature Macadamia Nuts: Reduced from $18.99 to $13.99
- Kirkland Signature Spanish Olive Oil, 3-liter bottle: Reduced from $38.99 to $34.99
- Kirkland Signature Baguette, 2-pack: Reduced from $5.99 to $4.99
- Kirkland Signature Laundry Packs: Reduced from $19.99 to $18.99
Why is Costco dropping prices on popular Kirkland items?
All it takes is one trip to the grocery store to see how much inflation has driven up prices in recent years, but Costco is determined to do what it can to save shoppers money. “Our goal is always to be the first to lower prices where we see the opportunities to do so,” Millerchip said.
All of Costco’s Kirkland Signature products are produced in-house, which means the brand has complete control over its pricing. But how exactly is Costco able to lower prices? The wholesale club has gotten creative. For example, it switched the packaging of its Kirkland Signature Laundry Packs from a rigid plastic tub to a pouch, saving money during production—savings that it passes on to Costco shoppers.
Another reason the company is quick to drop prices is that lower prices lead members to do more shopping, and that’s good for Costco. For example, Costco dropped the price of its Kirkland Signature Boneless Chicken Tenders by 13% and reaped a 21% increase in sales.
Are Kirkland products worth buying?
Kirkland Signature products are undeniably beloved by Costco members. In fact, the popularity of the Kirkland Signature brand has continued to grow at a faster pace than Costco itself. Why? The value is truly unmatched. Even professional chefs stock up at Costco, and there are quite a few Kirkland Signature items on their go-to shopping lists.
Even if Costco membership costs are on the rise, these price drops on Kirkland Signature items offer enough savings to make up the difference—and then some.
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Source:
- Seeking Alpha: “Costco Wholesale Corporation (COST) Q4 2024 Earnings Call Transcript”
