1srelluc
Diamond Member
A top Costco Wholesale executive confirmed the big-box retailer has no plans to change the price of its $1.50 hot dog-and-soda combo at its stores despite months of decades-high inflation.
Costco CFO Richard Galanti reiterated the cheap price point on the fan-favorite deal would stay in place during the company's fourth-quarter earnings call on Thursday.
An analyst asked whether Costco was adjusting prices in other parts of its business to maintain sales margins for its hot dog-and-soda deal and other value offerings.
"Lightning just struck me," Galanti joked when the combo was mentioned. He added that higher-margin businesses such as gas and travel sales help Costco maintain its value deals.
"Those things help us be more aggressive in other areas, or as you mentioned, hold the price on the hot dog and the soda a little longer forever," Galanti added.
Costco and other retailers have hiked prices over the last year, passing along the higher costs of commodities and goods to consumers. Inflation has slightly declined in recent months but was still hovering at a hotter-than-expected 8.3% in August.
Galanti estimated that price inflation at Costco was about 8% during the fourth quarter, with increases “a little higher on the food and sundries side.”
Costco doesn’t have any immediate plans to hike its membership fees, according to the executive. Annual membership dues at the retailer currently start at $60.
mOAR
As long as they leave my roasted chicken alone I'll be fine.
They did cut costs a bit by no longer offering the sweet onion relish they used to have.
Costco CFO Richard Galanti reiterated the cheap price point on the fan-favorite deal would stay in place during the company's fourth-quarter earnings call on Thursday.
An analyst asked whether Costco was adjusting prices in other parts of its business to maintain sales margins for its hot dog-and-soda deal and other value offerings.
"Lightning just struck me," Galanti joked when the combo was mentioned. He added that higher-margin businesses such as gas and travel sales help Costco maintain its value deals.
"Those things help us be more aggressive in other areas, or as you mentioned, hold the price on the hot dog and the soda a little longer forever," Galanti added.
Costco and other retailers have hiked prices over the last year, passing along the higher costs of commodities and goods to consumers. Inflation has slightly declined in recent months but was still hovering at a hotter-than-expected 8.3% in August.
Galanti estimated that price inflation at Costco was about 8% during the fourth quarter, with increases “a little higher on the food and sundries side.”
Costco doesn’t have any immediate plans to hike its membership fees, according to the executive. Annual membership dues at the retailer currently start at $60.
mOAR
As long as they leave my roasted chicken alone I'll be fine.
They did cut costs a bit by no longer offering the sweet onion relish they used to have.
