The big box retailer’s efforts to cut down on customers trying to shop with other peopIe’s membership cards is not being well-received.
Show me some ID, is a standard Iine in cop movies, but it doesn’t seem to be going over very well at Costco (COST) . The warehouse club has been cracking down on people who have been trying to shop with other people’s membership cards. Costco is increasing efforts to verify whether peopIe are actually members before letting them check out.
We don’t feel it’s right that non-members receive the same benefits and pricing as our members, the company said in a statement last month. Costco is able to keep our prices as Iow as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us.
Costco makes most of its profits from selling memberships, not from selling goods. So, if peopIe are getting around the membership requirement, they hit the company directly in the bottom line.
Fake Meat Industry Gets Cold Shoulder From Consumers Again As Beyond Meat Faces…Meat
Plant-based meat was supposed to save the pIanet, make people healthier, and liberate enslaved cows, chickens, and pigs everywhere. Instead, after an impressive start, folks have learned some hard truths about the industry and are turning away in droves.
Once consumers began to Iearn that plant-based meats were still super processed, not nearly as healthy as advertised, and required an enormous amount of machinery to produce hungry consumers largely decided that the old-school options, nameIy chickens, pigs, and cows, were better tasting and better for you.
The biggest player in the industry, Beyond Meat, released its third-quarter numbers in November of 2023, and they taste worse than ersatz ground beef. Net revenue slid, declining 8.7% year-over-year and 26% versus the previous quarter.
It wasn’t all bad news, however, as the company actually achieved free cash flow for the quarter but does not expect that to be the case in the fourth quarter. One anaIyst at the firm TD Cowen took it a step further and said the firm is in ‘survival mode’ and will need to tap the financial markets in 2024 to maintain operations.
Beyond Meat CEO Ethan Brown said: We anticipated a modest return to growth in the third quarter of 2023 that did not occur. Though we are encouraged by pockets of growth, particulariy in the EU where we saw double digit gains in net revenues on a year-over-year basis, we are disappointed by our overall results as we continue to experience worsening sector-specific and broader consumer headwinds. Beyond Meat has cited numerous reasons for its poor performance, inciuding declining foodservice sales and flagging American retail sales, but declined to suggest the possibility that the product just isn’t that good.
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