Costco Chief Financial Officer Richard Galanti is warning about exceedingly difficult times for U.S. consumers as food inflation is expected to continue to worsen all over the country. At the warehouse chain, shoppers are noticing explosive prices across a series of everyday items right now, and that will continue to be the norm for the rest of the year and into 2024. New reports reveal price hikes of up to 70% in some key categories.
Meanwhile, some shelves remain empty at the retailer’s stores, That’s why, in today’s video, we decided to track the grocery products facing the steepest price increases in recent weeks and months, and which ones are still in short supply at Costco so you can prepare for the challenging environment that lies ahead.
Over the past year, it has been hard to overlook the fact that the cost of everything from produce to baked goods to dairy products increased at Costco warehouses. But new reports show that this trend has intensified in recent months, and analysts at GoBankingRates say that a new round of price hikes was just introduced in the company’s system, that’s why staying aware and prepared is key.
Since April, price tag changes of 30% up to 70% were observed at the chain’s warehouses, according to Julie Ramhold, an industry expert with DealNews.com. That was also true in May, and June, with a flood of consumer reports confirming the trend. The report also notes that the most shocking price hikes occurred in the meat category, which includes beef, pork, poultry, and fish.
Right now, four-pound packs of Costco’s Kirkland Signature Sliced Bacon are selling for $21.99, up from $16.99 just a couple of months ago, Ramhold points out. Another user noted in May that ground beef prices soared to $25.99 at Costco, while the same product was selling for $19.49 at Aldi. The steepest price increase was observed on King Crab prices, which shoot up from $22.99/lb to $38.99/lb, a whopping 70% surge.
At the same time, dairy products and eggs continue to face empty shelves at Costco warehouses, and prices are rising faster than at other big-box stores. For lots of people out there, these higher prices mean they can no longer afford to shop at Costco. Although you can still find deals for certain products, the cost of basic staples is reaching record levels.
Data shared by Bloomberg reveals that those price hikes are already hurting Costco’s bottom line. In May, the company’s sales declined for the third straight month as US consumers fled to cheaper stores.In June, the company’s Chief Financial Officer Richard Galanti warned about exceedingly difficult times for US consumers.
He said he has seen a significant share of customers switching from purchases of beef products to less expensive choices, like pork and chicken. He highlighted that typically observes this trend historically during times when the US entered a recession in the past.
Galanti’s cautious tone scared investors, who were already concerned about the company’s rising prices, supply chain problems, and slowing sales. That pushed Costco stock down 20% from March levels.
With crazy-high prices turning more and more customers away, turbulence is coming for the warehouse chain. But before things start spiraling out of control, don’t forget to check for deals and get ready for the inflationary crisis at major grocery stores in the months ahead.
Article and video cross-posted from Epic Economist.
Independent Journalism Is Dying
Ever since President Trump’s miraculous victory, we’ve heard an incessant drumbeat about how legacy media is dying. This is true. The people have awakened to the reality that they’re being lied to by the self-proclaimed “Arbiters of Truth” for the sake of political expediency, corporate self-protection, and globalist ambitions.
But even as independent journalism rises to fill the void left by legacy media, there is still a huge challenge. Those at the top of independent media like Joe Rogan, Dan Bongino, and Tucker Carlson are thriving and rightly so. They have earned their audience and the financial rewards that come from it. They’ve taken risks and worked hard to get to where they are.
For “the rest of us,” legacy media and their proxies are making it exceptionally difficult to survive, let alone thrive. They still have a stranglehold over the “fact checkers” who have a dramatic impact on readership and viewership. YouTube, Facebook, and Google still stifle us. The freer speech platforms like Rumble and 𝕏 can only reward so many of their popular content creators. For independent journalists on the outside looking in, our only recourse is to rely on affiliates and sponsors.
But even as it seems nearly impossible to make a living, there are blessings that should not be disregarded. By highlighting strong sponsors who share our America First worldview, we have been able to make lifelong connections and even a bit of revenue to help us along. This is why we enjoy symbiotic relationships with companies like MyPillow, Jase Medical, and Promised Grounds. We help them with our recommendations and they reward us with money when our audience buys from them.
The same can be said about our preparedness sponsor, Prepper All-Naturals. Their long-term storage beef has a 25-year shelf life and is made with one ingredient: All-American Beef.
Even our faith-driven precious metals sponsor helps us tremendously while also helping Americans protect their life’s savings. We are blessed to work with them.
Independent media is the future. In many ways, that future is already here. While the phrase, “the more the merrier,” does not apply to this business because there are still some bad actors in the independent media field, there are many great ones that do not get nearly enough attention. We hope to change that one content creator at a time.
Thank you and God Bless,
JD Rucker
Unsound fiscal policies are destroying the nation, bit by bit…2+2=5 may be woke math but it is more like 2+2=less than zero…sure FEELS good to be broke
Bidenomics… nothing to be proud of.
It is well past time we get the jackass Biden out of the white house before he puts the final nail in our coffin. He and his coke-snorting son belong in a Federal prison somewhere doing hard time. It’s just disgraceful!