Why a honey turkey label worries Costco shoppers
While an innocent typo is entirely possible for the expiration date mishap, how do you explain the price jump? Some Reddit users comment that the increase is due to inflation, and they may be right. Despite its reputation as a cheap haven for members, Costco has seen signs of inflation since May. Richard Galanti, Costco’s chief financial officer, blamed the flurry of reporting you might see regarding rising wages and supply chain issues.
However, the Consumer Reports Index 2021 indicates that perhaps we shouldn’t take Galanti’s words for the whole truth. The report shows that Costco increased its prices by 5%, but clarifies that “[in the financial year of] In 2021, Costco’s net income increased by $1 billion to $5 billion and payouts to shareholders increased by over $4.5 billion to over $6.2 billion. In other words, the price increases aren’t necessarily driven by Costco’s loss of profit. Costco is also planning to increase the membership fee year round, but in all fairness, this increase is part of the five and a half year pattern that Costco has established.
A typo can happen quite easily in this best before date case, but why the price of turkey has gone up may be something we’ll never get to the bottom of.