Photo: Tim Boyle / Getty Images
Kirkland Signature rotisserie chickens, sold by Costco, are a phenomenon. They represent a good affordable and delicious alternative for chain store customers. For just $4.99 you can take home a whole chicken, delicious and cheap.
From 2009, the largest price chain in the world, keeps them in their displays at the same price, despite the passage of time and economic inclemencies, such as inflation.
In its most recent report from the Bureau of Labor Statistics, the rise in prices in the country increased 0.3% in April and 8.3% year-on-year. If we compare the price of chicken in relation to the previous year, it rose 16.4%.
However, despite this increase Costco has given no sign that it will raise the prices of one of its star products. For the price chain, staying at a low price can bring high profits.
Costco’s chicken attracts hundreds of customers to its stores, passing them through several aisles before reaching the area where they are located. During that journey, consumers add hundreds of dollars worth of products to their shopping carts.
This product increases the frequency of purchase, and in the process, customers see other product offers and spend more money.
Several analysts have seen a profitable game in the chicken price strategy. Despite the fact that in previous years Costco reported annual losses of between $30 and $40 million dollars, for this product, the balance is balanced by the increase in sales of other products and at a general level.
During 2009, Costco sold $87 million dollars, and in 2018, $99 million dollars of chickens, twice as much as a decade ago.
In the chain of stores placed a sum never seen before, of 106 million chickens.
In 2019 a poultry complex was opened in Nebraska to control production costs at the store.
Given the galloping inflation in the country, the next question should focus on how long Costco could hold out maintaining the prices of rotisserie chickens.
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