According to Costco’s executive Pierre Riel, the wholesale giant has slashed prices on hundreds of items since the beginning of 2023. Riel, the chief operating officer of Costco Wholesale Corp.’s international and Canadian division, made these remarks during a session with a House of Commons committee in Ottawa focused on food prices. Speaking in French to MPs, Riel explained that Costco has actively managed price increases while swiftly implementing decreases as input and commodity costs decline.
Emphasizing Costco’s commitment to offering value to its customers, Riel highlighted the expansion of the company’s private-label brand, Kirkland Signature, which has seen a 12 percent increase in items over the last four years. According to Riel, Kirkland products provide at least a 20 percent savings compared to national branded items.
Additionally, Costco continues to invest in Canadian suppliers, with nearly two-thirds of its Kirkland products manufactured in Canada, and in its workforce, with an increased starting hourly wage of $18.50 as of September and an average hourly wage of $30.20. Unlike some competitors, Costco does not engage in freezing price requests over the holiday season, instead consistently seeking ways to lower prices and mitigate increases. Riel attributed Costco’s success to its membership model, which enables the company to offer products at the lowest possible prices.
Pierre Riel, executive vice-president and chief operating officer of Costco Wholesale International and Canada, waits to appear as a witness at the Standing Committee on Agriculture and Agri-Food (AGRI) in Ottawa on Tuesday, Feb. 13, 2024. THE CANADIAN PRESS/ Patrick Doyle
Regarding the industry-led grocery code of conduct aimed at supporting smaller players in the food sector and stabilizing prices, Riel stated that Costco is open to signing the code if its principles align with the company’s values, but emphasized the need for clarity on its implementation and impact on food prices. Despite challenges, Costco reported a significant increase in net income and sales in its latest quarter, reflecting the continued strength of its membership base in both the U.S. and Canada.
