Amid the inflation crisis, Costco’s chief financial officer sees changes in customer habits that point to a recession.
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Publicly traded Costco Wholesale holds a quarterly call on the company’s financial results.
Here are three things CFO Richard Kelanti saw as U.S. food prices skyrocketed.
Less red meat
Beef sales are down in the aisles of warehouse stores, the entrepreneur confirmed to Costco shareholders. Customers are increasingly switching to pork or chicken.
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Benzinga, a media specializing in economic news, reported an increase in sales of meat and fish products in the second quarter of 2023.
With their affordability and longevity, canned foods have never been more popular.
Kirkland draws interest
Costco’s private label, Kirkland, sees higher sales volume in 2023.
Offering lower prices than national brands, Kirkland products are increasingly finding their way into consumers’ shopping carts.
Globally, the US company reported a 4.2% sales decline.
The multinational’s executive attributed the figures to lower sales of electronics and home appliances such as refrigerators and televisions.
As interest rates continue to climb in the United States and Canada, Richard Kelanti believes these early signs of a recession could mean worse in the coming weeks.