Costco's Squeeze on Suppliers Signifies Pain for P&G, Nestle
- Warehouse club to introduce more store brands as Amazon looms
- Costco shares dip after profit margins narrowed last quarter
A customer shops inside a Costco Wholesale Corp. store in Miami, Florida.
Photographer: Scott McIntyre/BloombergThis article is for subscribers only.
Costco Wholesale Corp. will push suppliers to lower prices on everything from steaks to televisions, aiming to keep customers away from rivals like Amazon.com Inc.
The warehouse-club chain wants vendors to shoulder a greater part of the cost of limited-time promotions for its 50 million members. The company is also introducing more products under its Kirkland Signature brand, such as fragrances, apparel, and a Nutella-like hazelnut spread that’s “flying off the shelves,” Chief Financial Officer Richard Galanti told analysts Wednesday.