Has inflation put Costco's pumpkin pie out of reach for some shoppers this fall?
Costco's surprise price change has the internet buzzing.
2022 hasn't been a particularly great financial year for shoppers or supermarkets.
As consumer spending habits change due to inflation and shoppers switch to more affordable
brands or rely more on store promotions, supermarkets have seen a downward dip in the stock market
as customers look for ways to save money and keep up with the inflating costs of food.
But it's not all bad news.
Costco, in particular, has managed to stay on top of the inflation crisis.
According to The Motley Fool, the key to Costco's success during this time is that 79% of its
revenue comes from membership fees, rather than the margins on the items that it sells.
As prices for food soar everywhere, many shoppers seem to be turning to supermarkets that have
a reputation for low prices, as Costco does.
As a result, Costco reported that 90% of its memberships were renewed in 2021.
That means the wholesaler hasn't had to resort to hiking its prices.
In May, Costco senior vice president Bob Nelson was quick to debunk rumors that the store
was increasing its $1.50 hot dog and soda food court deal.
Not only was Costco not planning on increasing the deal's price, but Nelson also said that
the retailer's membership fees would remain the same.
Now, shoppers at the warehouse have noticed the price tag on another iconic Costco offering:
the pumpkin pie.
And it seems that there's more good news to spread.
"Every year when I have my first piece of pumpkin pie, I think it's better than the previous year.
That's how good it is."
In 2021, Costco was selling its pumpkin pies for $6.99.
So it would only be fair to assume that the pumpkin pies would retail for the same price in 2022.
But it turns out, not only has Costco not increased the price of its pumpkin pie, but
the wholesaler has actually lowered it.
Costco's pumpkin pies are going for the same price as they were two years ago at $5.99
in some locations.
And, naturally, shoppers are loving it.
At that price, the pumpkin pies could be part of an easy, inexpensive dinner.
In other news, however, a Costco employee sadly found that this was in contrast to the
prices for tiramisu and pot pie, which they claimed went up about $10.
The employee wrote on Reddit:
"It's great that we lowered the price on pie, but the bakery and deli is one of our worst
hit departments in regards to inflation."
Apparently it's a good year to be a pumpkin pie person and not a tiramisu one.
While pumpkin pie lovers will be happy with the fall treat's 2022 price tag, not every
food at Costco has been safe from inflation.
Redditors have reported seeing price increases on the Costco bakery's croissants and muffins, for instance.
And cake-loving consumers might not be happy to know that Reddit claims the price of Costco's
sheet cakes has gone from $19.99 to $24.99.
Some Redditors also say the Just Bare frozen chicken nuggets at Costco have seen inflation-related
price increases.
Still other shoppers claim to have seen increased prices on toilet paper at their local Costco stores.
Costco senior vice president Bob Nelson admitted in the company's third-quarter earnings call
that the warehouse has raised prices "in certain areas, in food, in sundries, and in fresh foods."
Nelson also said on the call:
"We believe our solid sales increases and relatively consistent margins show that we
have continued to strike the right balance in passing on higher costs."
And while the $1.50 hot dog combo is here to stay, other items on the Costco food court
menu haven't been as lucky.
According to a July report from CNBC, the food court's chicken bake rose in cost from
$2.99 to $3.99, and the fountain sodas went up to $0.69, from $0.59.
Costco shoppers might want to expect their next shopping trip to cost just a little bit
more — but they can rest assured that the beloved, affordable hot dog isn't going anywhere,
and neither is that scrumptious pumpkin pie.