Why Costco Discontinued A Customer-Favorite Food
Costco has left many customers disappointed after they discontinued their popular peanut butter cups and take-and-bake pizza due to simply not having enough shelf space to stock it any longer.
This article is more than 2 years old
Costco has enraged and disappointed many of its customers this week after they have discontinued more customer favorites. One of the many delights of shopping in places like Costco is their food court and the low prices of their many items. It entices a lot of customers to shop there instead of its competitors.
Thinking about their mini peanut butter cups, take-and-bake pizza, and great bargains would make anyone take a trip. So when customers find out that their favorite Costco snack or product will not return, it can be an unpleasant event.
So why would Costco make the decision to remove something that is so popular with its customers and risk losing business? There are several reasons why this may happen. Sometimes popular products are limited editions or brought out for a specific season like Thanksgiving or Christmas.
Also, it is difficult to get shelf space in Costco and remain there as they sell a limited number of products. Basically, only the ones that are in the highest demand from consumers so they will buy them in bulk. Compared to other stores, Costco sells approximately 4,000 different products to their 40,000 individual ones.
Costco manages to keep its prices low by selling a high amount of its products on a daily basis. If something is lagging behind in sales, it will quickly be replaced with something that is deemed to be more successful.
The product can also disappear from shelves if the supplier or manufacturer raises the stock price too much or the general quality of the item declines. Having products over a specific price is something that is off-brand for Costco and doesn’t fit in with its successful business mantra. Costco will try to be the lowest-priced option of products on the market and would potentially pull a product from its shelves if that was not possible.
Also, if they find a supplier’s product in a different store and believe it tastes better, they will ask the manufacturer to change the product, or it could face being dumped by the superstore.
Another factor in Costco selling a product is that there needs to be a constant supply of the product ready for them to use. If the manufacturer cannot produce a big enough quantity of the specific product, they will opt to put another product that can be produced at the desired rate.
The superstore values products that gross a high profit and have a reliable manufacturing source. When a store gets to the size of Costco, it not only holds a high percentage of the food store market, but it can demand precisely what it wants from suppliers and manufacturers of its products. What Costco does, it does it well, and companies want to be a part of that. As for customers, if your favorite product is on the chopping line in Costco, it would be a good idea to stock up as there is a chance it may not return unless it is a seasonal product.
