Just one word: Poultry (not plastics).
Costco plans to open a poultry processing plant to beef up the profit margins of its chicken rotisserie business, which generates $300 million in annual sales.
With this move, the warehouse club will exert greater sourcing control over its exclusive Kirkland Signature-branded chicken products, reflecting a push for “supply sustainability, and using our volume and reduced-SKU mentality to drive costs out of the system,” Jeff Lyons, a Costco spokesperson, told Forbes.com. Indeed, the plant is designed to reduce wasteful and costly overproduction of chicken, boost the retailer’s profit margins, and pass those savings on to consumers.
To read the rest of the story, please go to: Forbes
