Costco reportedly loses about $30 million annually on its rotisserie chicken sales.
This loss primarily stems from the low price of the chickens, which Costco sells for only $4.99 each.
Despite the financial hit, the rotisserie chicken is a significant draw for customers.
Many shoppers visit Costco specifically for the chicken, leading to increased foot traffic and additional sales in other departments.
The company uses the loss on rotisserie chicken as a strategy to build customer loyalty.
Costco aims to create an overall shopping experience that encourages bulk purchases and higher overall spending.
The rotisserie chicken also has a high turnover rate, meaning they sell a lot of them, which might offset some of the losses.
This strategy has proven effective, as many loyal customers return regularly for their chicken fix.
In the end, the rotisserie chickens serve as a loss leader, helping Costco maintain its competitive edge in the market.
The overall benefits from increased store visits often outweigh the losses incurred from the chicken sales.
Why does Costco sell rotisserie chicken so cheaply?
Costco sells its rotisserie chicken at a low price to attract customers into the store. The idea is that once customers are there, they will buy other items.
How often does Costco restock their rotisserie chickens?
Costco typically restocks their rotisserie chickens throughout the day. This ensures that customers can always find fresh chickens available.
What makes Costco’s rotisserie chicken so popular?
Costco’s rotisserie chicken is known for its flavor, tenderness, and size. Customers appreciate the quality and value, making it a hot item.
Can you order rotisserie chicken from Costco online?
Currently, Costco does not offer rotisserie chicken for online ordering. It’s a product that must be purchased in-store.
How long can you keep Costco rotisserie chicken in the fridge?
You can keep Costco rotisserie chicken in the fridge for about 3-4 days. Make sure to store it properly to maintain freshness.