Costco Is Lowering Costs of Some of Its Most Popular Items—Here's What's Getting a Price Cut

Is your favorite Signature Kirkland item on the list?

Costco recently raised membership fees in September, and the company addressed the price increase and its plans to provide value to its customers during a Q4 Earnings Call. In addition to lowering prices to some Kirkland brand products, the company plans to raise wages, keep already low prices low, and adjust its manufacturing practices. Here are the key takeaways from Costco executives on how they are fighting back against inflation and rising food costs.

Related: How to Shop at Costco if You're a Minimalist Like Me

What Items Are Getting Lower Prices?

Costco is slashing some prices on its signature Kirkland brand products , which the company produces in-house. “Our goal is always to be the first to lower prices where we see the opportunities to do so,” Executive Vice President and  Chief Financial Officer Gary Millerchip said on the earnings call. New long-term savings announced on the call include:

• Kirkland Signature Macadamia Nuts: $13.99 (was $18.99)
• Kirkland Signature Standard Foil: $29.99 (was $31.99)
  
• Kirkland Signature Spanish Olive Oil: $34.99 (was $38.99)
• Kirkland Signature 2-Pack Baguettes: $4.99 (was $5.99)
• Kirkland Signature Laundry Packs: $18.99 (was $19.99)

In addition, Costco lowered the cost of Kirkland Signature Boneless Chicken Tenders (down 13%), which helped increase sales by 21% in the last year. Prices staying the same low price include hot dogs ($1.50) and rotisserie chicken ($4.99).

Costco evaluated consumer trends when determining their pricing strategy, and the executives said they noticed more people are eating at home than out lately. They noted that households are doing what they can to save money on groceries and are more conscious consumers.

“We've certainly seen a continued acceleration in some of those lower-cost protein items like poultry and cheaper cuts of beef like ground beef and pork,” Millerchip said on the call. Costco shoppers are especially interested in saving money at Costco's meat, produce, and bakery departments.

How Costco Is Keeping Costs Low

Costco has a commitment to sustainable production practices and is aiming to lower its overall emissions, which executives say is key to keeping costs low. For example, they changed their Kirkland Signature laundry packs from a plastic tub to a pouch, which lowered the price from $19.99 to $18.99.

They’ve also switched some production to be more localized, which has lowered costs on items like water, detergent, and paper. This change has also lowered emissions because they no longer need to ship millions of paper towel units overseas.

Employee Benefits and Store Openings

Increased membership fees are doing more than keeping costs low. More than 76.2 million Costco members (up 7.3% over last year) are helping employees, too. Costco executives committed to increased wages for managerial and hourly warehouse workers, though the exact increase wasn’t mentioned on the call.

Costco has also used funds from the price increase to add membership ID scanners at front entrances . According to executives, the move was “very well received” by members because it has expedited the checkout process.

Increased membership costs will help fund new Costco store openings . In 2024, there was a net of 29 new locations, including the 600th U.S. store in Eau Claire, Wis. And the organization has no plans to stop their growth despite inflation changing how consumers spend on groceries. “Thankfully, with the quality and value that we're offering, [these changes are] definitely resonating with our members,” Millerchip said.

Related: 11 Surprising Things You Can Get at Costco

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