Costco's Prices Might Soon Change. Here's Why
What a pleasure it can be to stroll the oversized, air-conditioned aisles of Costco with a giant shopping cart, stuffing our faces with free samples as we load up on enormous packages of toilet paper and gigantic bottles of olive oil. There are so many things to love about the grocery store, but among the most appealing are the wholesale chain's affordable prices. From prepared foods to electronics to clothing, the retailer boasts a wide range of products at an accessible price point.
But Costco fans might soon be feeling a hit to their wallet. The chain is reporting higher costs across the board, from labor to freight — and as costs for Costco go up, the chain might soon be forced to pass that burden on to consumers in the form of higher prices. Read on to find out what's happening, and which of your favorite store items might soon cost you more.
Inflation is causing issues everywhere
According to Costco CFO, Richard Galanti, the retailer is facing extraordinary inflation lately (via CNBC). During the company's third-quarter earnings call, Galanti cited a slew of factors that have forced Costco to shell out more lately, including higher prices on the shipping containers the company uses, increased labor costs, and the cost of meat, which has gone up a whopping 20 percent over the last month alone. Other items Costco has paid more for lately include paper, plastic products, soda, and cheese. So far Costco hasn't made any drastic changes to the prices in its stores, however, there might eventually be enough economic pressure that it will have to.
"We think we've done pretty well in terms of controlling that as best as we can, but the inflation pressures abound," explained Galanti. If you love Costco's $4.99 rotisserie chicken and its $2.99 40-pack case of bottled water, you may also want to pay close attention. Galanti cited these items as those that might fall victim to a price hike. Additional items whose costs might go up, include tin foil and paper towels. Sounds like it's time to seek solace in that $1.50 hot dog and fountain soda combo — fingers crossed the price tag on this classic will never, ever change.