Costco says it's actually cutting prices on some products as inflation stabilizes
- Costco cut prices on frozen berries, reading glasses, and other products this year.
- The retailer wants "to be the first out there trying to lower prices," CFO Richard Galanti said.
Berries, batteries, and reading glasses are among the items that cost less at Costco now thanks to a slowing rate of inflation.
The retailer recently cut some of the prices at its warehouses, CFO Richard Galanti said during an earnings call late Thursday. Among the reductions: 48 Kirkland batteries now cost $15.99, down from $17.99. A four-pound bag of mixed frozen berries runs $10.99 — it used to be $14.99.
And a pair of reading glasses is now $16.99, a cut from $18.99. Inflation was "essentially flat" in the company's second quarter ended Feb. 18, Galanti said.
"We're taking price reductions where we can," Galanti said during his final call before retirement, adding later: "We always want to be the first out there trying to lower prices."
Inflation has slowed down over the last several months. But shoppers haven't necessarily seen price cuts. Food still accounts for a larger portion of consumers' spending than any time since the early 1990s, for instance.
Some consumers are growing their own food or using all the coupons they can find to save money, Business Insider reported last month.
At the same time, prices for durable goods like cars and appliances have started falling, according to federal data. It's been several years since the US saw widespread deflation, including among grocery items.
As inflation soared over the past two years, warehouse retailers like Costco and Walmart's Sam's Club benefited from deal-hungry consumers looking to save money.
Galanti also said that customers won't have to stomach an increase to their annual membership fee right now — though he added that Costco is debating "when, not if" the next fee increase will come. The cheapest Costco membership runs $60 a year, and the chain last raised the fee in 2017.
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