You become a Costco member for one basic reason: to save money. I know, it is fun to take a couple of hours of your Sunday afternoon and go through the aisles taking a look to all the amazing products, and grabbing again and again free samples. But, at the end of the day, membership is meant to save you money.
While the chain’s room for maneuver is large, it has not been immune to the inflation that hits the United States – as well as the rest of the world – and they have had to get creative, so they have to transfer as little as possible the impact to their customers and club Costco members.
How to Costco cope with inflation for the benefit of the costumers
The phenomenon of high inflation is something that we, the residents of the United States, are not used to. I mean, yes, it has always existed, but I don’t remember two years as hard as those that came after the COVID-19 pandemic that, along with other geopolitical factors, have left us with inflation exceeding 8% in our nation.
And when things go well for Costco, they go well for its customers, said CFO Richard Galanti, who is optimistic in this fight to curb the rising cost of living for Americans.
Although they have not come out unscathed of the global crisis, Costco has good news for its club members: two of the factors that have had the most impact, such as the hyper inflated container freight price and delays at ports, have improved drastically, and that means that an early and long expected relief is coming to your wallet.
In the last two years, due to the uncertainty for the global shortages, that had impacted Costco and other retailers all around the world, it was necessary to reduce some promotional activities: it is not so simple to offer discounts when you do not know when the new inventory will arrive (or if it will arrive at all).
Therefore, and in view of the gradual normalization of supply, Galanti said that they’re seeing positive changes this year, that will benefit its customers. “There are more promotions now. I remember last year, or the last two years, due to the shortage of electronics, both we and the industry in general saw less promotional activity, but now we are seeing promotions return,” he said.
Having said that, I recommend you to look forward to the next Costco monthly offers flyer, or the e-mail newsletter, where we will see the triumphant return of more great discounts.