Costco reported in its fourth-quarter earnings report that it had reduced prices on some Kirkland-branded products.
Costco Chief Financial Officer Gary Millerchip said on a conference call last Thursday that the company’s sustainability investments have allowed Costco to pass on savings to customers.
Miller Chip Co. said the company lowered the price of Kirkland Signature Boneless Chicken Tenderloin by 13% and sales increased 21%.
Other Kirkland Signature price reductions include:
Standard foil reduced from $31.99 to $29.99 Macadamia nuts reduced from $18.99 to $13.999 Spanish olive oil reduced from $38.99 to $34.992 Baguette pack reduced from $5.99 to $4.99 Laundry pack reduced from $19.99 to $18.99 price reduction to
Mirrorchip reported that price reductions are not limited to the United States, as by producing toilet paper for the Asian market in Japan, it was able to reduce prices in that market by 30%.
Price reduction due to increase in membership fees
The price cuts were discussed nearly a month after the company implemented its first membership fee increase since 2017.
Gold Star memberships in the U.S. and Canada increased in price from $60 to $65 in September, and executive memberships increased from $120 to $130.
When the company announced the price increases in July, it said the increases would affect about 52 million members.
Millerchip reported that its membership fee revenue increased $3 million to $1,512 million. The CFO said that about half of new member registrations in fiscal 2024 were under 40 years old, and the number of executive members increased by 9.7% from the previous year.
Contributor: Mike Snyder