Some good news for inflation-tired Americans: no price increases CostcoHot dog.
In an interview on Monday CNBC’s “Squawk on the Street, “CEO Craig Jelinek replied in one word when asked if he would like to raise the price of special food court products. “No”.
Costco continues to generate strong sales, despite other retailers saying that consumers are more budget-conscious and spend more on services rather than goods. It also avoids another recent problem for many retailers. Overstock It is piled up in warehouses and stores and now needs to be packed or marked down.
But in the midst of nearly 40 years of high inflation, Costco Increased the price of staples in some food courts.. Earlier this month, chicken bake jumped from $ 2.99 to $ 3.99, and 20 ounces of soda rose from 10 cents to 69 cents. As a result, there was speculation that the ultra-low prices for hot dogs could also be hiking. Hot dog and soda combos have been on sale for $ 1.50 for decades, Mental floss article From 2018, when it started to be distributed again recently.
This article talks about Jelinek’s approach to Costco co-founder and former CEO Jim Sinegal. He told him that the company was losing money on iconic food.
“I came to (Cinegal) once and said,’Jim, I can’t sell this hot dog for $ 50,'” said Jerinek, according to a mental floss article. Quote 425 Business.. “We’re losing the back,” he said, “if you raise F’s hot dog (price), I’ll kill you. Understand that.” Really needed. That’s it. “
Another aspect of Costco’s business is also being scrutinized: when membership fees may rise. Costco membership is $ 60 per year and $ 120 per year for executive membership, a high-level option with additional discounts and perks.
Most of Costco’s profits come from annual fees, not from selling merchandise. According to Jeffreys analyst Corey Tarlow, it has historically risen every five and a half years, with the final rise in June 2017, which is on track to rise soon. The membership fee usually increases by $ 10.
On Monday, Jerinek told CNBC that the increase in membership fees was “not on the table at this time.”
“I made it very clear,” he said. “I don’t think it’s the right time. Our application remains strong.”
