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Costco is one of the key brands in the retail industry, thanks to the business it consolidated in the price club segment, where its memberships and the price of its hot dog stand out.
The supply of food in retail has led Mexican supermarket chains such as Chedraui to implement very complete areas of restaurants within their branches.
The CEO of Costco, Craig Jelinek, ruled out an increase in the price of memberships and its iconic hot dog. The positive figures registered by the brand support its decision, but also a very clear interest in moving an important inventory of own brands during this inflation with the risk of recession that is being experienced.
During an interview for the show Squawk on the Street of CNBCJelinek was questioned about a possible increase in the price of hot doga fact that he ruled out with a brutal: No, at the time he ruled out that membership prices will increase.
And it is not surprising that they are in good spirits in maintaining prices, since, if we observe figures of Brand Finance, there is an upward value of its brand appreciation, which has gone from 12 billion dollars in 2018 to just over 37 billion dollars expected for this 2022.
A projection of International Monetary Fund warns that for this 2022 the highest inflation rate is experienced compared to 2021 and perspective view of the 11 years listed.
According to the agency, the inflation rate is 7.4 percent for this 2022, which places this year as the worst price increase in productstherefore, it seems logical that the interest in selling own-brand products, which are the ones that consumers trust the most in periods of uncertainty due to the apparent good price-quality ratio, motivate chains such as Costco to freeze prices on products key code.
A study which checks the above was conducted by EnsembleIQwhen the firm asked a group of North American consumers why they buy a private label and the main reason, that is, the aspect for which 70 percent of them voted was to save money.
ICONIC PRICES THAT HAVE CHANGED
We recently released the story of the new design on the cans of the arizona teaswhich became popular for having the price of 99 cents on the dollar printed on their cans, a cost that remained for years, in some testimonies attributed to a personal decision of its creator and, in others, to a very intelligent move in the purchase of aluminium, which is the main raw material for this product.
At the time we announced that this can, which was one of the greatest legends of design, changed its image on its packaging, showing the new price with a value of more than a dollar, which disappointed in networks but reminded us as a price and the promise to the consumer to keep it, motivates all kinds of aspects, from design elements, to macroeconomic issues, such as making an aluminum reserve.