1707939041 Inflation Costco would cut prices claims Quebec39s leading multinational

Inflation: Costco would cut prices, claims Quebec's leading multinational

Costco is not like Metro, Provigo and IGA. Instead of freezing prices from October to February and then increasing them, they are reduced on hundreds of products throughout the year.

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This is what the number 1 of the multinational in Quebec, Pierre Riel, said on Tuesday in Ottawa. The Quebecer, who rose from Club Price trader to big boss in 1987, was before the agriculture committee to talk about stabilizing food prices.

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His visit to the capital comes less than a week after Metro admitted the price freeze, which then led to price increases. It is the Kirkland private label that allows the American giant to lower its prices, said the senior vice president and general manager of the 26 warehouses in eastern Canada.

Inflation: Costco would cut prices, claims Quebec's leading multinational

Pierre Riel before the Agriculture Committee, Tuesday, February 13, 2024. Screenshot from the Canadian Parliament website

Costco's homemade products “offer at least a 20% savings” compared to national brand items, Mr. Riel said, adding that the number of Kirkland products has increased 12% in four years.

Yes, of course Costco, like Metro, Provigo and IGA, has to deal with the numerous price increase requests from its suppliers, says Pierre Riel.

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But thanks to memberships — the $60 or $120 a year for the famous membership card — the company can afford to offer products “at the lowest possible price.”

Costco, whose shares are traded on the NASDAQ, posted a profit of $1.59 billion in its most recent quarter, up 16%.

In Canada, where the company has an estimated five million members, sales rose 6.4%. At $60 a year – a conservative average – that equates to $300 million.

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