Asked about raising prices in the latest earnings call, Costco CFO Richard Galanti reiterated: 'It's a question of when, not-if.' He explained how the company leverages 'wow items' like the $4.99 rotisserie chicken to keep Coscto members coming back.
UBS US Hardline & Broadline and Food Retail Analyst Michael Lasser told Yahoo Finance that the company likely sees the current moment as "an opportune time to charge a little bit more for the members because we're delivering so much value to them.""I suspect that they'll announce it later this spring and implement it early this summer," Lasser said.
"If you go do the homework on what the cost of processing and selling a rotisserie chicken, our $4.99 price... is an investment in low prices to drive membership, to drive sales in a big way," Galanti explained.In December, longtime Costco CEO Craig JelinekCostco last raisedmembership prices — a Costco Gold Star membership costs $60 per year and an Executive Membership goes for $120 — in June 2017.
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