Teens in California, Pennsylvania and New York have found the same $1,3 billion dollar savings on a new computer, home and home appliances that Costco had been selling in its stores.
The discounting of products also comes as the nation’s largest retail chain has announced it is reducing its employee costs by as much as 25 percent.
Costco says the savings are part of the company’s plan to lower costs by 50 percent in 2021 and beyond.
Costco announced in December that it will cut costs in 2021 by as little as 25 to 30 percent, with the goal of saving as much on labor and other costs as possible.
The company also has begun to sell its full line of products in grocery stores and convenience stores, as well as online.
Costco announced it will reduce the number of employees at its North American operations to 5,000 from 10,000, and cut their total compensation by as many as $2,000 a year.
Costco CEO Doug McMillon announced the company will slash the number and size of stores, with a focus on the states where it has the biggest sales.
“I want to make sure that we have the right people in those positions to go after our customers,” McMillon said during a conference call with analysts on Thursday.
The company is not the only retailer to cut costs amid a market recovery.
Target, Walmart, Kohl’s and Target Meats have all said they are cutting prices.