Shoppers rush to Costco to grab huge bargains after prices slashed – as giant enters war with Walmart and Target

Costco announced that it has lowered prices on several of its popular grocery items.

The wholesaler said it had reduced the cost of Kirkland Signature products, including chicken and olive oil, by as much as 13 percent.

Costco is the latest company to enter the so-called grocery “price war” after Walmart, Target and Aldi cut costs for consumers earlier this year.

Americans are feeling increasing pressure as high inflation has hit household budgets.

According to Labor Department data, food prices have risen 20 percent in the past five years.

Costco announced the price cuts during its fourth-quarter earnings call late last month.

Customers rushed to snap up the deals, the retailer said, illustrating consumer appetite for more affordable groceries.

It lowered the price of Kirkland Signature boneless chicken tenders by 13 percent, leading to a 21 percent increase in sales.

It also reduced its standard foil from $31.99 to $29.99, its own brand macadamia nuts from $18.99 to $13.99 and a 3-liter container of Spanish olive oil from $38.99 to $34.99.

The cost of a two-pack of baguettes was reduced from $5.99 to $4.99 – a drop of almost 17 percent.

Costco also lowered the price of its laundry kits by $1 — dropping the price to $18.99 — after switching packages.

“Our goal is always to be the first to lower prices where we see the opportunity to do so,” executive vice president and chief financial officer Gary Millerchip said on the earnings call.

It comes after major retailers including Aldi, Amazon, Target, Walgreens and Walmart slashed the cost of thousands of essential products earlier this year.

Walmart was the first to cut prices on 7,000 items with its “rollback” program earlier this year.

In June, Walgreens announced it was cutting the cost of 1,300 items in stores and online, including snacks and toiletries.

“Walgreens understands that our customers are under financial pressure and are struggling to purchase everyday essentials,” said Tracey Brown, Walgreens Chief Customer Officer.

Amazon Fresh, the grocery division of the online giant, said on May 24 it was cutting prices on 4,000 items by as much as 30 percent.

Target also said in May that it was cutting prices on 5,000 items from dozens of national brands as well as its own brand items.

Supermarket chain Aldi said in April it would pass on $100 million of savings through Labor Day by further reducing everyday low prices on more than 250 items.

The price cuts come shortly after Costco last month raised membership prices in the US for the first time in seven years.

Costco lowered the price of Kirkland Signature boneless chicken tenders by 13 percent, leading to a 21 percent increase in sales, the company said.

Costco is the latest company to enter the so-called grocery ‘price war’ after Walmart, Target and Aldi slashed costs for consumers earlier this year

Costco said it has reduced its Kirkland standard foil from $31.99 to $29.99

Costco raised its membership fees in September for the first time since 2017

Starting September 1, the department store chain’s standard membership increased by $5 per year, from $60 to $65.

The Executive tier — which offers a 2 percent discount on all Costco purchases made that year up to a total of $750 — increased by $10 to $130 per year.

The changes represent the first rate increase since June 2017.

Costco said in September that the increase will reach 52 million memberships, about half of which will be at the highest level.

But despite the price increase, Costco reported an increase in membership fee revenue during its last earnings call, which rose $3 million year over year to $1.512 billion.

About half of new member signups in fiscal year 2024 were under the age of 40, Millerchip added.