Some good news for inflation-weary Americans: There will be no price hikes CostcoHot dog.
In an interview Monday on CNBC, “Noise in the street,” CEO Craig Jelinek responded with a one-word “no” when asked if he would raise the price of the signature food court item.
While other retailers talked about consumers becoming more budget-conscious and spending more on services rather than goods, Costco continued to post strong sales. This avoids another recent problem for many retailers: Excess inventory It piles up in warehouses and stores, which now need to be packed or marked.
Yet in the midst of nearly four decades of high inflation, Costco Some food court staples have hiked prices. Earlier this month, its chicken bake went from $2.99 to $3.99, and its 20-ounce soda rose 10 cents to 69 cents. The extremely low price of its hot dogs has fueled speculation that the increase may be due. The hot dog and soda combo sold for $1.50 for decades and was a staple. Mental Floss Essay Since 2018 it has recently been back in circulation.
The article describes the time Jelinek approached Costco co-founder and former CEO Jim Sinegal. He said the company was losing money due to small food items.
“I (Senegal) came up once and said, ‘Jim, you can’t sell this hot dog for a buck fifty,'” Jelinek said, according to a Mental Floss article. Citing 425Business. “We’re losing our rear ends.’ And he said, ‘If you raise the price of an effing hot dog, I’m going to kill you, figure it out.’ That’s all I needed.”
Another aspect of Costco’s business is also under scrutiny: when its membership fees increase. A Costco membership costs $60 a year or $120 for an executive member, a higher-tier option that includes additional discounts and perks.
Most of Costco’s profits come from annual fees, not from selling products. It has historically raised it every 5½ years and the last increase was in June 2017, putting it on track for a soon-to-be hike, according to Cory Tarlow, an analyst at Jefferies. Its membership fee typically increases by $10.
On Monday, Jelinek told CNBC that raising membership fees is “not on the table right now.”
“I made it very clear. “I don’t think it’s the right time. Our records continue to be strong.”