Costco's Loss Leader
Costco sells rotisserie chickens at a loss to draw customers into stores. This strategic move boosts overall sales, as customers often make additional purchases.
Steady Price, Rising Costs
Despite inflation and rising chicken feed costs, Costco keeps its chicken at $5. This decision reflects commitment to customer value and consistent pricing strategy.
Vertical Integration
Costco vertically integrated its supply chain by opening a poultry complex in Nebraska. This controls production costs and maintains chicken quality and price.
Chicken's Popularity Surge
Costco's $5 chicken has become emblematic, selling 101 million in 2020. Its popularity persists as consumers seek affordable, convenient meal options.
Environmental Impact
The production scale of Costco's chickens raises environmental concerns. The Nebraska facility processes over 2 million chickens per week, prompting waste management challenges.
Labor and Welfare
The low chicken price sparks debate on labor conditions and animal welfare. Critics argue that cost-cutting may come at the expense of ethical practices.
Future Price Sustainability
Experts question the long-term sustainability of the $5 price point. With global economic shifts, Costco may face increased pressure to adjust prices.Chicken Throne
Costco's rotisserie chickens have their own Facebook fan page with thousands of ardent followers!
Why does Costco sell cheap chickens?
For customer loyalty only
To boost overall store sales
Because of overproduction
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