Costco Gets Tough on Suppliers

Costco Wholesale Corp. is telling suppliers who maintain high prices that it may consider eliminating some brands if they don't offer relief, Richard Galanti, executive vice president and chief financial officer, told investors last week. We don't have to carry three brands of an item, he said. However, we see opportunities for manufacturers who are willing to help our members.

ISSAQUAH, Wash. — Costco Wholesale Corp. here is telling suppliers who maintain high prices that it may consider eliminating some brands if they don't offer relief, Richard Galanti, executive vice president and chief financial officer, told investors last week.

“We don't have to carry three brands of an item,” he said. “However, we see opportunities for manufacturers who are willing to help our members.”

Galanti also said penetration of private-label items is escalating

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