Costco says it will keep your hotdog and soda combo for just $1.5

Hundreds of customers who visit Costco stores buy cheap fast food packages – Photo: PATRICK T. FALLON/AFP/Getty Images.

Although inflation continues to hit hard on the pockets of the vast majority of the population in the United States, some companies are trying to withstand the increases generated by the logistics costs of most of the products they acquire to market them, as is the case of Costco Wholesale Corporation.

The world’s second-largest retail chain, after Walmart, Costco, announced its strategy for the remainder of the year.

During a telephone call to several media outlets, Richard Galanti, Costco’s CFO, acknowledged that they have adjusted prices in some areas of their business model to avoid passing on cost increases to the final products and services that end up in the hands of their consumers.

Under this scheme is how they have avoided increasing the price of such simple but emblematic promotions as their hot dog and soda combo, which is offered in the food area of their stores for only $1.5.

In this regard, the executive pointed out that there are no immediate plans to modify the price of this package or the annual membership for its customers, which will continue to be $60.

“Those things help us to be more aggressive in other areas, to keep the price of the hot dog and the soft drink a little more. We are confident in our ability and, at some point, we will have to raise prices, but not this year,” he said.

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Galanti estimates that, during the fourth quarter, price inflation at Costco was around 8%, with increases “a little higher on the food and sundries side.”

However, several specialists agree that in that period, the company recorded quarterly revenues of $72.09 billion and earnings per share.

Perhaps in anticipation of this scenario, a couple of months ago, in response to questions about a possible price increase, Craig Jelinek, CEO of Costco, ultimately ruled out this option.