Galanti responded by explaining that while the membership-based discount retailer could raise its membership fees, it wouldn’t make sense to do so now as the retailer seeks to continue providing consumers with value. While Galanti retains the belief that Costco could raise fees without hampering demand, it is preferable to allow the company’s other “profit and sales drivers” to do the bulk of Costco’s income generation.

Questions surrounding Costco’s membership fees come after the discount retailer reported third-quarter earnings per share that missed Wall Street estimates. The company’s same-store sales for the period edged 0.1% lower.

While Galanti maintains that Costco’s decision to maintain its membership fees is not due to fears of crippling demand, Walmart’s chief executive Doug McMillon insists that higher grocery prices have had an undoubted impact on consumer demand. “The persistently high rates of inflation in these categories lasting for such a long period of time are weighing on some of the families we serve,” McMillon stated during his company’s latest earnings call.

The post Costco Keeps Membership Fees Constant Amid Rise in Grocery Prices appeared first on theprimarymarket.com.

A report released by the Bureau of Labor Statistics earlier this week revealed that the cost of food jumped 10.9% year-over-year in July. The grocery prices, which are categorized as “food at home,” saw an even bigger hike of 13.1%. This represents the highest increase since 1979.

Looking at a 12-month basis, cereals and bakery products increased 15.0% over the year, while prices of flour saw a 22.7 hike. But the biggest hike was the courtesy of eggs, which saw their price grow by 38% compared to the same period in 2021.

Fed increasing the interest rates isn’t the only thing behind more expensive groceries. Several other factors played a part, including avian flu among chickens that slashed egg production as well as a shortage of some other food items.

The skyrocketing food prices have caused Americans to adjust. According to American food giant Tyson Food, the demand for steaks has been declining as more customers are now turning to cheaper meats like chicken. The same trend was noted elsewhere, as many are turning to affordable food items and generic brands instead of sticking with high-priced options.

The post U.S. Grocery Prices Saw a 13.1% Increase in July appeared first on theprimarymarket.com.

Galanti responded by explaining that while the membership-based discount retailer could raise its membership fees, it wouldn’t make sense to do so now as the retailer seeks to continue providing consumers with value. While Galanti retains the belief that Costco could raise fees without hampering demand, it is preferable to allow the company’s other “profit and sales drivers” to do the bulk of Costco’s income generation.

Questions surrounding Costco’s membership fees come after the discount retailer reported third-quarter earnings per share that missed Wall Street estimates. The company’s same-store sales for the period edged 0.1% lower.

While Galanti maintains that Costco’s decision to maintain its membership fees is not due to fears of crippling demand, Walmart’s chief executive Doug McMillon insists that higher grocery prices have had an undoubted impact on consumer demand. “The persistently high rates of inflation in these categories lasting for such a long period of time are weighing on some of the families we serve,” McMillon stated during his company’s latest earnings call.

The post Costco Keeps Membership Fees Constant Amid Rise in Grocery Prices appeared first on theprimarymarket.com.

A report released by the Bureau of Labor Statistics earlier this week revealed that the cost of food jumped 10.9% year-over-year in July. The grocery prices, which are categorized as “food at home,” saw an even bigger hike of 13.1%. This represents the highest increase since 1979.

Looking at a 12-month basis, cereals and bakery products increased 15.0% over the year, while prices of flour saw a 22.7 hike. But the biggest hike was the courtesy of eggs, which saw their price grow by 38% compared to the same period in 2021.

Fed increasing the interest rates isn’t the only thing behind more expensive groceries. Several other factors played a part, including avian flu among chickens that slashed egg production as well as a shortage of some other food items.

The skyrocketing food prices have caused Americans to adjust. According to American food giant Tyson Food, the demand for steaks has been declining as more customers are now turning to cheaper meats like chicken. The same trend was noted elsewhere, as many are turning to affordable food items and generic brands instead of sticking with high-priced options.

The post U.S. Grocery Prices Saw a 13.1% Increase in July appeared first on theprimarymarket.com.