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Costco Sees Inflation Affecting Many Facets Of Business
Newsmax ^ | 5-29-2021 | Nick Koutsobinas

Posted on 05/29/2021 11:16:03 AM PDT by blam

The big-box chain store Costco is seeing many areas where prices are increasing due to rising inflation. From aluminum foil to shipping containers, the chain store has seen a 20% increase in meat prices over the past month.

The company's CFO Richard Galanti said, according to CNBC, that there are "inflationary factors abound," adding, "These include higher labor costs, higher freight costs, higher transportation demand, along with the container shortage and port delays … increased demand in various product categories some shortages, various shortages of everything from chips to oils and chemical supplies by facilities hit by the Gulf freeze and storms and, in some cases, higher commodity prices."

However, Costco did report a profit of $2.75 a share, blowing past Wall Street estimates. It also beat Wall Street estimates netting $45.3 in revenue, well past its expected $43.6 billion.

Still, the numbers underneath tell a different story, leading to a domino effect of price increases across the board.

Like its competitors, Costco struggled to pass its increased costs on to customers. The company, while expecting some margin pressures, hasn't seen any significant impacts from the market.

Many economists and those on Wall Street see the trend of inflation going many ways. According to CNBC, some economists believe the annual pace of inflation at 3.1% only to be temporary. Michael Burry, who Christian Bale portrayed in the film the "Big Short," tweeted earlier this year that the high yield printing of the U.S. dollar could lead to a hyperinflation scenario.

Galanti cited prices from goods including pulp and paper, an assortment of plastic products, and soda and cheese, rising to as high as 8%. Even the prices of some apparel items rose anywhere from 3% to 10%.

(snip)

(Excerpt) Read more at newsmax.com ...


TOPICS: News/Current Events
KEYWORDS: costco; inflation; prices; shortages
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1 posted on 05/29/2021 11:16:03 AM PDT by blam
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To: blam

Not to worry. Pig Face Bidet will increase imports from his Commie friends in Red China and all will be well. Just as long as he gets his take.


2 posted on 05/29/2021 11:19:54 AM PDT by crz
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To: blam

All you corporate kissups to the BLM and Antifa and Kamala Harris agenda: S#r@w you.

I hope you suffer. Don’t raise prices on me. Save by stopping your extortion payouts to the Leftists. Pass the savings on to us.

Good line:
You aren’t going to like what comes after America.— Leonard Cohen.


3 posted on 05/29/2021 11:23:36 AM PDT by frank ballenger (You have summoned up a thundercloud. You're gonna hear from me. Anthem by Leonard Cohen)
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To: blam

All you corporate kissups to the BLM and Antifa and Kamala Harris agenda: S#r@w you.

I hope you suffer. Don’t raise prices on me. Save by stopping your extortion payouts to the Leftists. Pass the savings on to us.

Good line:
You aren’t going to like what comes after America.— Leonard Cohen.


4 posted on 05/29/2021 11:23:37 AM PDT by frank ballenger (You have summoned up a thundercloud. You're gonna hear from me. Anthem by Leonard Cohen)
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To: frank ballenger

Good line:
You aren’t going to like what comes after America.— Leonard Cohen.

More like...You may not SURVIVE what comes after America.


5 posted on 05/29/2021 11:30:17 AM PDT by goodnesswins (The issue is never the issue. The issue is always the revolution." -- Saul Alinksy)
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To: blam

6 posted on 05/29/2021 11:30:20 AM PDT by plain talk
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To: goodnesswins

God help us here on this forum.


7 posted on 05/29/2021 11:32:15 AM PDT by frank ballenger (You have summoned up a thundercloud. You're gonna hear from me. Anthem by Leonard Cohen)
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To: blam

You all wanted Biden and all this woke crap. Now the chickens are coming home to roost.

Middle class folks will no longer be able to afford Costco.


8 posted on 05/29/2021 11:33:17 AM PDT by dforest (huh?)
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To: blam

One would think that mask Nazism also affects their business. I will avoid shopping there until they drop the mask mandate.


9 posted on 05/29/2021 11:40:35 AM PDT by Fiji Hill
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To: blam

One of my wife’s friends and great office manager predicted huge price increases besides gasoline after the election was stolen.

She told my wife to keep receipts from Costco, our local grocery store and Amazon from the last quarter of 2020 and watch the increases on the items we buy.

Of course the Gasoline price increases are evident everyday when we drive by any filling station.

The price increases in just under 5 months are incredible. Anything that has a petroleum base and probably heavy shipping costs are up 20-30%.

The only thing actually costing less, are our quarterly vehicle insurance bills/rates. We keep getting refund checks from our insurer. They charge the same rate and then give us rebate checks. We just got $120 back for 2 vehicles.

We try not to buy or order anything that isn’t on sale.

Yesterday, was our buy fresh produce for the weekend. (can’t really buy short life products ahead of time.) The produce manager told me that basically everything they received had gone up 10% from the same order earlier in the week.


10 posted on 05/29/2021 11:48:50 AM PDT by Grampa Dave (“Respond only to polite and intelligent posters, who don’t insult you or us! Forget the others!”)
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To: blam

If the statisticians exclude high-inflation items like gasoline, food, clothing, housing, commodities, appliances, restaurants, construction materials, vehicles, and the day-to-day sundries we all need to live, inflation is only 3%.

And that little bit of inflation is just “transitory.” Prices will be rolled back any day now.


11 posted on 05/29/2021 11:53:28 AM PDT by ProtectOurFreedom (“No man’s life, liberty or property are safe while the Legislature is in session" - Gideon J. Tucker)
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To: frank ballenger
All you corporate kissups to the BLM and Antifa and Kamala Harris agenda: S#r@w you.

https://duckduckgo.com/?q=Costco+blm

Right up top, nothing but news articles about Costco pulling Palmetto Cheese products because Palmetto's founder called BLM terrorists.

I get all of our groceries at the small independent grocery store here in rural MO. I could save a little money by going to walmart but that would be supporting china and certain brands I don't like. Our little store carries lesser known meat and processed meat brands. Very little Tyson or Smithfield products. I'm also slowly working on producing as much food as we can. Got red meat going. Gardening too. Pork will be next. We're driving a 30mpg car now instead of the full size truck which gets about half that. Made that swap after biden got in. Been trying to get prepared for whatever is coming. Funny, I started prepping back when obama was in the WH and now we have the same people in charge really. Rice, Valjar etc. That's why dem voters don't care who's president, as long as it's a dem. The same hive minded cabal will be running the show.

12 posted on 05/29/2021 11:53:50 AM PDT by Pollard
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To: blam
According to CNBC, some economists believe the annual pace of inflation at 3.1% only to be temporary.

Yes, the annual pace of inflation will be over 10%, then 20%,< for years.

13 posted on 05/29/2021 11:54:51 AM PDT by roadcat
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To: crz

China does not export food. It imports huge mounts of meat and dairy.


14 posted on 05/29/2021 11:58:16 AM PDT by Fai Mao (It is time, past time and almost too late.)
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To: roadcat
Yes, the annual pace of inflation will be over 10%, then 20%,< for years.

Do you have any sources to back this up??

15 posted on 05/29/2021 12:01:14 PM PDT by rexthecat (nks!)
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To: rexthecat

Ever hear of humor, sarcasm, jesting... Who needs sources when you can postulate on what may happen with liberals steering the economy?


16 posted on 05/29/2021 12:06:04 PM PDT by roadcat
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To: blam

“Michael Burry,”

Who????

“who Christian Bale portrayed in the film the ‘Big Short,’”

Yeah, I still don’t know who the hell he is.

“tweeted earlier this year that the high yield printing of the U.S. dollar could lead to a hyperinflation scenario.”

Ah, he “tweeted” something. Must be important.


17 posted on 05/29/2021 12:08:47 PM PDT by Larry Lucido (Donate! Don't just post clickbait!)
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To: blam

Wage, price, and rent control have always worked, right?


18 posted on 05/29/2021 12:16:52 PM PDT by dynachrome ("I will not be reconstructed, and I do not give a damn.")
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To: blam

Summary: Costco’s costs have gone up, so it raised prices (the writer confuses the terms “costs” and “prices” and uses them interchangeably) and it passed on the costs by raising prices and still made a tidy profit. It struggle to not pass to costs on or it struggled to pass the costs on over pushback (not clear) but it pass the costs on like all businesses do and made money as usual. Somebody who got played in a movie by somebody tweeted something. The end.


19 posted on 05/29/2021 12:19:07 PM PDT by Larry Lucido (Donate! Don't just post clickbait!)
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To: ProtectOurFreedom

I work in purchasing for my company, and I have reviewed what we paid 15 years ago for trucking, warehouse, raw materials, packaging, insurances, taxes, health insurance, etc...

That have not all moved the same, but overall, I assure you that inflation over the last 15 years has not been 1-2%, but rather 6-7% p.a.


20 posted on 05/29/2021 12:24:57 PM PDT by PGR88
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