Costco shrinks a fan favorite, surprises members

When you shop at a typical supermarket, you usually expect to see the same items on the shelves week after week.

Costco works differently.

While a traditional supermarket could easily carry 30,000 or more SKUs (stock keeping units) at a given time, Costco warehouses usually only stock about 4,000 SKUs at a time. And that’s intentional.

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Costco likes to limit its inventory so that it has better quality control over the products it sells. It also does this to ensure that it can develop strong relationships with suppliers and negotiate excellent prices for members.

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Costco also needs to keep a close eye on inventory so it can pull problematic items as quickly as possible. The company’s return policy lets members bring back most items at any time for a complete refund, so it needs to have a solid pulse on what’s being sold and how members are reacting to their purchases.

Because of this unique approach, Costco’s inventory can change dramatically – and often without any warning whatsoever.

Costco shrinks a fan favorite, surprises members

Image source: Brooks Kraft LLC/Corbis via Getty Images

Costco inventory changes are a mixed bag

The fact that Costco makes frequent changes to its inventory is a good thing in one regard.

There’s a reason people call shopping at Costco a treasure hunt. During any given shopping trip, you might discover a host of new products you never knew existed.

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And let’s be real. If you’re a snack lover, it can be very exciting to see new goodies hit the shelves at Costco.

But Costco’s tendency to change up its inventory can also be problematic. You could easily have a favorite product of yours disappear from Costco’s shelves without warning.

Earlier this year, for example, Costco fans were very saddened when their beloved Kirkland Signature soy milk was pulled from the store’s shelves. Costco took that product out of its rotation due to sluggish sales, but it still left many members in the lurch.

Costco’s latest product change is interesting, to say the least

Sometimes, Costco won’t get rid of a product entirely so much as change it up.

Take the famous bakery muffins. They used to come in giant sizes and mix-and-match packs of six. Now, they come in “normal” muffin sizes and are sold in packs of eight.

Costco recently made another change in its bakery section. And members aren’t quite sure what to make of it.

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If you’re a Costco member, you’re no doubt familiar with the store’s iconic sheet cakes. Now, Costco is selling a much smaller version in cupcake form.

The cupcakes, like their massively sized counterparts, are available in both chocolate and vanilla and are being sold in packs of 12 for $8.99.

Fans took to Reddit to discuss Costco’s latest bakery offering. But the reviews were mixed.

“These are better than homemade,” one user wrote. Another said, “These are perfect sizes.”

However, another user called the cupcakes “overpriced” based on their size.

Others acknowledged that while the new cupcakes are a good option for those not wanting to purchase a whole sheet cake, the value wasn’t necessarily jumping out at them.

“For that price, should be a 36 pack,” one Redditor wrote.

All told, if you’re someone who enjoys Costco’s mega-sized sheet cakes, you’ll probably like these new cupcakes as well. Whether you can justify the purchase is another story.

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But all told, it seems like Costco is taking steps to slowly un-supersize its bakery products. Whether that’s a good thing or a bad thing depends on you.

Maurie Backman owns shares of Costco.

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