Costco makes sneaky food pricing change, angers members

There’s a reason Costco has long maintained such a loyal customer base.

Consumers know they can walk into pretty much any supermarket or big-box store without having to fork over money for a membership fee. Yet Costco fans continue to pay for access to the store, and it’s because of the company’s reputation for competitive, fair pricing.

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Major supermarkets and big-box stores are known to stock their shelves with tens of thousands of SKUs (stock-keeping units). Costco, on the other hand, limits its inventory to about 4,000 SKUs.

But that’s intentional.

Costco purposely aims to limit its inventory to better control prices. The warehouse club giant would rather give up an opportunity to carry a new product than sell it at a price it thinks members won’t like.

Costco’s sneaky food pricing change has members upset.

Image source: Bloomberg/Getty Images

Costco has even more control over its own brand

Another tactic Costco uses to keep prices low is creating its own version of popular items under the Kirkland label.

Some store brands have the reputation of being cheap or less desirable than their brand-name counterparts. But Costco’s Kirkland brand is known for both quality and affordability.

Since its inception, Costco has expanded the Kirkland brand to include everything from grocery products to household items to clothing. But for many members, Kirkland food products are a big draw.

Costco’s bakery is one area where Kirkland products can really shine. Fans tend to love the bakery’s selection of fresh, affordable Kirkland offerings, from breads to muffins to celebration cakes. And it’s always exciting to see new items hit the bakery shelves.

Costco’s recent bakery pricing change has members upset

Consumers across the board have been more mindful of their spending in the wake of lingering inflation.

Costco’s low prices have been a lifeline for cash-strapped consumers, allowing them to stock their kitchens on the relative cheap. And a lot of the value comes from buying products in bulk.

But just because Costco is known for its super-sized products doesn’t mean it can’t be accused of a trend called “shrinkflation.”

Shrinkflation is a tactic manufacturers use to keep prices steady but cheat consumers out of money by offering less product. And now, fans are accusing Costco of engaging in this very practice in the store’s bakery section.

Costco bakery cookies have long been offered in packs of 24. But one of Costco’s more recent creations, brown butter sugar cookies, are only being sold in packs of 21.

This also isn’t the first time Costco has been called out for shrinkflation. Roughly one year ago, Costco members took to Reddit to complain about their favorite products getting smaller.

One user pointed out that the frozen blueberry bags weren’t as large as they once were. Another noted that the toilet paper went down in sheet count.

Costco’s brown butter sugar cookies aren’t the only shrinking bakery item fans are criticizing. Last year, Costco rolled out a change to its famous jumbo-sized muffins.

Instead of selling those muffins in two packs of six for $9.99, Costco offers a single eight-pack of considerably smaller muffins for $6.99.

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Costco claimed the reason for this change was that customers had complained the previous muffins were too large. But it’s hard to overlook that members are now getting less muffin for their money.

Costco has long prided itself on being a retailer that prioritizes an outstanding customer experience. If it continues to engage in sneaky tactics like shrinkflation, it risks losing members at a time when so many people are trying to cut costs and conserve funds.

Maurie Backman owns shares of Costco.