Costco Reports 50% Price Hikes On Thousands Of Different Items As CEO Warns Of Difficult Times

Costco has gained popularity over the years due to its affordable prices on everything from pantry staples to household essentials. Its warehouse club members are often attracted by the value and the quality of its huge product range. Although the company tried to limit the impact of inflation by not passing along unnecessary price increases to its customers in recent years, there was only so much it could do before its bottom line started getting hurt. Now, multiple reports reveal that shoppers are seeing some outrageous price hikes at the retailer’s stores. According to its executives, unprecedented challenges hitting supply chains and its internal operations left the wholesale corporation no choice but to raise costs on thousands of different items, and retail experts say that even more double-digit markups are coming this summer.
Complaints about surging prices at Costco stores are piling up on social media. On Reddit, one user reported that in February his “favorite” Kirkland-brand smoked salmon had crept up from $19.99 to $20.99 — and is now $23.99 at the warehouse. “Costco prices have become insane, to the point where I prefer other places for basic items,” he noted.
On top of that, four-pound packs of Costco’s Kirkland Signature Sliced Bacon surged in price to $21.99 compared to a more reasonable $16.99 just a year ago. That’s definitely too pricey for some critics. “I can find it on sale much cheaper,” wrote one commenter. Coffee lovers are experiencing sticker shock at Costco too. In January, Kirkland Colombian coffee sold for $9.99, now it’s $15.99. And another Redditor revealed that they’re paying about $20 for it at their local warehouse.
A similar price increase is being reported for its Kirkland-brand butter, which the warehouse club tends to sell in two- to four-pound bundles. One shopper noted the cost had jumped from $8 to $14.99. “Yeah, I about cried in the store a couple of days ago over the price of butter,” griped another.
In March, SheFinds exposed that both Costco’s muffins and croissants had increased by $1 to $8.99 and $5.99, respectively. Many other bakery items have also suffered price hikes, so it’s important to want to double-check what you’re adding to your cart. For instance, one Redditor says, “I found an old container that held Cinnamon loaves I kept to use for Christmas cookies, and it said $8.99. Currently, the same item is $14.99.” The fruit and produce sections are also disappointing loyal consumers.
“Produce in general, both fruits and vegetables, is of questionable quality, and we can usually do better at the local produce-focused market,” one comment reads. One Twitter user also mentioned the heightened prices on Costco salads over the past year: “As a working person, I have to buy my salad from Costco double the price. It was $2.99 1.5 years ago, and now it’s $4.99. My wage is the same as 2.5 years ago.”
But the most significant Costco price increase to watch out for in 2023 isn’t a specific food item. It’s the cost of membership, which is expected to go up this year for both tiers. During an earnings call, Costco CEO Walter Craig Jelinek and CFO Richard Galanti pointed to “unprecedented challenges” impacting the food supply chains and the company’s operations. Sticky inflation is also one of the catalysts of recent price hikes, they revealed. So if you haven’t made preparations yet, it is not too late to start. But don’t wait too long because from now on essentials will only get pricier while the value of our dollars continues to go down.