Costco Face Massive Shortages And Now Basic Food Items Are 100% More Expensive

Costco is facing a lot of pressure right now. Shoppers are reporting extreme price increases, while food and product shortages are forcing the company to discontinue a long list of items and reintroduce purchasing limits at its warehouses. Several reports reveal that the wholesaler’s supply chain is eroding, and that is leading the company to close some locations across the country and consider shutting down all of its famous food courts. But the retailer’s problems don’t end quite there. Bloomberg just reported that Costco registered its worse sales levels since the onset of the pandemic, and markets reacted by sending its stock right to the ground. Given all the turmoil the warehouse chain is facing, analysts are starting to question whether Costco is going to get through the crisis in retail intact or suffer some distressing consequences.
Something strange seems to be happening at Costco warehouses right now. The chain famously known for its cost-saving deals and fair prices is now dealing with increasing backlash for its eye-popping price increases. Consumers are reporting price hikes of almost 100% on basic items, while others note that their weekly purchases at Costco have gone up by $100 in a short few months. The revelations are quite shocking, with some people arguing that the company may be price gouging its customers.
“Chicken pot pies went from $16 to $30. Not buying those anymore,” commented one shopper. “I SWEAR the Bone Sipping Broth was 10.99 just 2 years ago. Now it’s 19.99,” marking an almost 100% surge, according to the shopper. “Our $400 trips have turned into $500 trips seemingly overnight,” shared another person on Reddit.
An April post shows a picture of smaller toilet paper packages and higher costs. “Costco shrunk their toilet paper and increased the price,” the caption read. According to CNN, toilet paper shortages are back again at the wholesaler’s warehouses, and scarce supplies led the company to reintroduce purchasing limits for the item in many areas of the country. Some regions may also see limits on some popular products such as paper towels, detergents, and other cleaning supplies.
The reason is that not only demand is higher, but the chain is also having a hard time with its supply chain. Problems with suppliers and shortages of key ingredients and materials are leaving shelves barer. While some stockouts may be fixed soon, a long list of products may never make their way back to Costco warehouses. Due to the challenges the wholesale retailer is facing to source some foods and products, it decided to discontinue a series of items starting this month.
The drastic changes in its product range are coming as a surprise for many consumers. They might also be surprised to find out that over a dozen warehouse closings have been announced for 2023, with Florida alone losing 8 stores this year. The news came just after one current Costco employee shared online that they were informed by management in January that the company is considering phasing out all food courts at US locations due to dwindling profits.
In March, Costco missed first-quarter earnings expectations, according to Bloomberg, registering the slowest sales since May 2020 as shoppers turned frugal on discretionary spending amid persistently high inflation. That has triggered an unpleasant response in the stock markets, with shares sinking 5% in just two days. The wholesaler’s troubles are sending shockwaves through the industry, with many analysts predicting that more closings and further financial losses are on the way for Costco.