Costco's Squeeze On Suppliers Signifies Pain For P&G, Nestlé
Wholesale giant Costco intends to push suppliers to lower prices on everything from steaks to televisions, aiming to keep customers away from rivals like Amazon.
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.
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