Costco isn’t yet in a position to cut prices even as shipping and commodities prices have fallen, the CFO says
in recent months as the global economic outlook has weakened. The daily freight rate to move a container across the Pacific is now $2,265, compared with $13,706 at the beginning of the year and $20,586 in September of last year, according to the Freightos Baltic Index, an international freight rate reading.
Costco is one of the biggest and most successful retailers in the country. In this video, WSJ’s Sarah Nassauer dissects the wholesaler’s unique approach to doing business. Photo: Qian Weizhong/ZUMA Press It can take anywhere from six months to a year before lower shipping costs translate into falling prices for consumers, said Chuck Grom, a managing director at Gordon Haskett Research Advisors. Higher costs in other business areas can delay price drops even longer.
Hourly employees, which account for about 90% of Costco’s workers, earn more than $25 an hour on average in the U.S., according to Mr. Galanti, following a string of pay increases over the past 18 months. The company looks to attract and retain workers in competitive job markets, such as Seattle, said Mr. Galanti. These cost pressures will persist, as wages don’t tend to come down once they have gone up, Mr. Galanti said. Costco had around 285,000 employees at the end of June.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Gas prices rising, OPEC cutting oil production -- experts say there could be political consequencesThe average gas price in the Chicago area as of Wednesday was $4.60 a gallon. That is up from $4.48 on Tuesday, and $4.35 last week.
Leer más »
With rents rising fast, Texas homeless shelters see more families seeking helpAmid rising housing costs and relentless inflation, an increasing number of Texans are struggling to pay their rent and stay in their homes.
Leer más »
Rally in Oakland urges community to get involved in wake of rising violenceCommunity members in Oakland gathered Wednesday night to rally against the ongoing gun violence in the city, just one day after the city recorded its 101st homicide of the year.
Leer más »
BOE Survey: UK business inflation expectations keep rising in SeptemberThe Bank of England’s (BOE) Decision Maker Panel survey of chief financial officers showed on Thursday, British businesses' expectations for consumer
Leer más »
Shell Braces for Profit Hit From Volatile Natural-Gas Prices, Rising CostsShell said it expects its third-quarter earnings to be hit by “significantly lower” profit from trading gas because of market volatility as well as higher costs for delivering fuel amid a global scramble for energy supplies
Leer más »