Costco Wholesale (NASDAQ: COST) has announced price reductions on a selection of its Kirkland Signature products, reducing costs by as much as $10 on items including frozen chicken wings, milk chocolate almonds, golf balls, and king-size sheets. The warehouse retailer highlighted these cuts under its “Lowering Everyday Low Prices” initiative in its fiscal third-quarter materials, reinforcing its value proposition to members.
The timing of these price adjustments is strategic, as Costco’s business model relies heavily on membership renewals rather than one-off purchases. Gold Star membership costs $65 annually, while Executive membership is $130. At the end of the quarter, Costco reported a U.S. and Canada renewal rate of 92.2%, with the global rate at 89.7%. The company is aiming to boost these figures amid a slowdown in paid membership growth, which has slipped to 4.1%, described by UBS analyst Michael Lasser as “the lowest level in some time.”
Costco’s expansion continues with the opening of a new warehouse in Pensacola, Florida. The gas station at the location began operations on May 28, and the warehouse at 225 E. Nine Mile Road is scheduled to open on June 25, 2026, according to the retailer’s location page. The company’s new-locations page lists Pensacola for June 2026.
The specific price reductions include Kirkland Signature Crispy Wings dropping to $14.99 from $16.99, Milk Chocolate Almonds now at $18.99 (down from $19.99), Golf Balls reduced to $29.99 from $32.99, and King Size Sheets falling to $79.99 from $89.99. These cuts are not chainwide but are applied selectively to these items.
On the May 28 earnings call, CEO Ron Vachris emphasized that these price moves are part of Costco’s standard approach. “Our goal is to be the first to lower prices and last to raise them,” Vachris stated. CFO Gary Millerchip noted that the company is rolling out new Kirkland Signature products designed to save shoppers at least 15% to 20% compared to similar name brands while matching or exceeding them in quality.
Costco reported fiscal third-quarter net sales of $69.15 billion, an 11.6% increase year-over-year. Net income rose to $2.19 billion, or $4.93 per share, compared to $1.90 billion, or $4.28 per share, in the same period last year. These strong financials provide the company with flexibility to implement price reductions.
Despite the price-cut news, Costco shares barely moved, trading at $973.50, down $1.25 from the previous close. The stock’s muted reaction reflects ongoing competitive pressures, including from Sam’s Club, owned by Walmart (NYSE: WMT), which recently launched one-hour delivery in the U.S., targeting Amazon and Costco. Costco told analysts its U.S. same-day delivery takes under 45 minutes through third-party partners.
However, there are headwinds. In its annual filing, Costco noted that tariffs, higher commodity costs, and its own pricing decisions could impact sales and margins. UBS analyst Michael Lasser questioned whether management should keep expectations low for established-warehouse sales given the slowdown in membership growth. JPMorgan’s Christopher Horvers asked if the pricing changes signaled a broader market shift or were simply opportunistic. Vachris responded that the moves were “strategic, not reactionary,” explaining that Costco looks to shift into cheaper inventory when costs drop and then passes savings to members.
