Costco has announced that it has reduced prices on several of its popular grocery products.
The wholesale retailer said it had reduced the cost of Kirkland Signature products, including chicken and olive oil, by up to 13 percent.
Costco is the latest company to enter the so-called “price war” on food, after Walmart, Target and Aldi reduced costs for consumers earlier this year.
Americans are feeling increasing pressure as high inflation has eroded household budgets.
Food prices have increased 20 percent in the past five years, according to data from the Department of Labor.
Customers were quick to take advantage of the new deals, Costco said, illustrating consumers’ appetite for more affordable foods (Pictured: A shopper in Miami)
Costco announced the price reductions during its fourth-quarter earnings call late last month.
Customers were quick to take advantage of the deals, the retailer said, illustrating consumers’ appetite for more affordable food.
Reduced the price of Kirkland Signature boneless chicken tenderloins by 13 percent, leading to a 21 percent increase in sales.
It also reduced its standard aluminum foil from $31.99 to $29.99, private label macadamia nuts from $18.99 to $13.99, and a 3-liter container of Spanish olive oil from $38.99. dollars at $34.99.
The cost of a two-pack of baguettes dropped from $5.99 to $4.99, a decrease of nearly 17 percent.
Costco also reduced the price of its laundry packs by $1, bringing the price down to $18.99, after changing the packaging.
“Our goal is always to be the first to lower prices when we see opportunities to do so,” Executive Vice President and Chief Financial Officer Gary Millerchip said during the earnings call.
It comes after major retailers including Aldi, Amazon, Target, Walgreens and Walmart reduced the cost of thousands of essential items earlier this year.
Walmart was the first to reduce prices on 7,000 items with its “rollback” program earlier this year.
In June, Walgreens announced it would reduce the cost of 1,300 items in stores and online, including snacks and toiletries.
“Walgreens understands that our customers are under financial pressure and are struggling to purchase everyday essentials,” said Tracey Brown, Walgreens chief customer officer.
Amazon Fresh, the online giant’s grocery division, said on May 24 that it was cutting prices on 4,000 items by up to 30 percent.
Meanwhile, Target also said in May that it was cutting prices on 5,000 items from dozens of national brands, as well as its own brand products.
supermarket chain Aldi said in April it would donate $100 million in savings through Labor Day by further reducing their everyday low prices on more than 250 items.
The price cuts come shortly after Costco raised membership fees in the United States for the first time in seven years last month.
Costco reduced the price of Kirkland Signature boneless chicken tenderloins by 13 percent, leading to a 21 percent increase in sales, it said.
Costco is the latest company to enter the so-called ‘price war’ on food, after Walmart, Target and Aldi reduced costs for consumers earlier this year.
Costco said it reduced its standard Kirkland aluminum foil from $31.99 to $29.99
Costco raised its membership fees in September for the first time since 2017
Starting Sept. 1, the warehouse-based retailer’s standard membership increased by $5 a year, going from $60 to $65.
The Executive level, which offers 2 percent cash back on all Costco purchases made that year up to a total of $750, increased from $10 to $130 a year.
The changes represent the first increase in rates since June 2017.
Costco said in September that the increase will reach 52 million memberships, about half of which are at the top level.
But despite the price increase, Costco reported an increase in membership fee revenue during the last earnings call, which increased $3 million to $1.512 billion year over year.
About half of new member enrollments in fiscal 2024 were under age 40, Millerchip added.