Costco knows that it’s the Taylor Swift of retailers.
The chain puts out very few news releases and generally speaks publicly only during its earnings calls and at select other times.
Costco executives, like Swift, know that the media will cover even their tiniest changes.
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If the singer posts a picture of her cat on Instagram, it will set off a wide range of news coverage speculating on what that might mean for her music and her relationship. Being big enough that your every move gets covered means you have to watch every move you make. Swift has done that very well in recent years.
Costco has always been very deliberate in its actions. The warehouse club moves slowly and its executives choose their public statements carefully.
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Costco (COST) has also generally been more transparent than some of its rivals. It has been honest in discussing inflation and is clear with members about how it’s pricing various items.
Being honest and transparent, however, sometimes means saying no to customers and telling them that directly,
This is how Costco used to package its chicken.
Image source: Shutterstock
Costco won’t change its chicken packaging
For decades Costco’s famous $4.99 rotisserie chicken was sold in a plastic clamshell. That’s how many of the chain’s rivals, including Amazon’s (AMZN) Whole Foods, still sell their cooked rotisserie chickens, but the warehouse club now sells its chicken in a bag.
That change was financial, designed to help enable Costco — which literally bought a chicken farm to help keep its pricing down — to protect the $4.99 price point.
Many comments on Reddit did not support the bag.
“The bags totally destroy the experience. What a greasy mess all over,” one commenter wrote, a sentiment that was echoed repeatedly.
A comment from Pickapalooza summed up what many people shared.
“They do a pretty good job of keeping the bags relatively clean, but there’s always grease on the outside,” the Reddit poster said. “I’ve put them in the orange bags for beef and seafood because I don’t want the chicken grease to get on my car seats.
“It’s more cumbersome and I feel like it takes more work for the staff to put them into the bags vs the containers they had before, as they have to do each one individually vs assembly line.”
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Pickapalooza acknowledged that price was the reason behind the move.
“As long as the price doesn’t go up, guess I’m ok with it,” they said. “I liked the container more though. And let’s now kid ourselves. This isn’t about the planet, it’s about saving money. Bags are way cheaper than the containers.”
Costco was asked during its annual meeting whether it planned to change back to the old clamshell packages.
“At this time, we remain committed to our current packaging, which was designed to maintain product quality while improving efficiency and sustainability,” the company said in a news release after the annual meeting. “However, we continuously evaluate packaging solutions based on member feedback, operational needs and environmental considerations.”
Costco expands fresh food, adds EV chargers
Costco has also committed to expanding its fresh, ready-to-eat, and easy-to-prepare food in a way many members may not expect.
“Our new sushi program is expanding in Canada and the U.S.,” the company said. “The product is made fresh daily in our warehouses using high-quality fish and real crab. Additionally, we have introduced gourmet take-and-bake pizzas in our delis, offering members new and exciting meal options.”
The chain also is making changes at its gas stations so it can serve more members as their fuel needs evolve.
[“Our] fuel team continues to expand EV charging,” it said. “We offer DC fast chargers for a high-quality member experience, and all equipment is Costco-owned.” Ninety warehouses will be equipped with charging stations by year’s end, it said.
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The chain also said it’s working toward offering new packaging options that, like EVs, are better for the planet.
“We are always exploring more sustainable packaging options and working closely with suppliers to evaluate materials that balance sustainability, food safety, and functionality,” Costco said.
“While we have made progress in reducing plastic use across various categories, we continue to assess compostable solutions that meet operational and regulatory requirements.”
