By Menachem Lubinsky, koshertoday.com
It was perhaps a sign of the times when a Long Island kosher store advertised prices that are 10% – 20% lower than Costco.
Kosher stores used to compete only against other kosher stores, but of late they are looking over their shoulder at stores like Costco, Target, Trader Joe’s and even Wal-Mart.
The discount and club stores are actively courting kosher customers with an unprecedented array of kosher products that in many ways seem to be “loss leaders” for attracting shoppers for the rest of the store.
Kosher stores say that while their customers still frequent the independents, they are shopping the club stores for produce, beverage, and even bakery.
I am convinced more than ever that today’s kosher customer has figured it all out.
They still use the kosher independents for prepared foods, kosher specialty items, and meats, but look for discounted dry goods in supermarkets and buy their produce and discounted kosher foods at stores like Costco.
I can appreciate the store that has decided to take on Costco head-on but it may be a futile exercise as more and more customers are shopping at the club stores. In Long Island, for example, the Costco stores have a wide variety of kosher items in almost every category.
During a recent visit to the Brooklyn Costco, I noticed many “kosher shoppers” with their carts filled not only with such kosher items as cheese, hummus, and deli but produce, paper goods, aluminum foil, and even frozen, all items that offer the kosher stores margins they desperately need.
I guess you might say: “Welcome to the new era of shopping!”
COSTCO CAN SELL CHEAPER BECAUSE THEY WORK ON A VERY SMALL MARKUP AND HAVE THEIR OWN DISTRIBUTION CENTERS TO DISTRIBUTE THE ITEMS THAT THEY CARRY. THEY WILL CARRY MORE AND MORE KOSHER ITEMS AS LONG AS THE MOMENTUM IS THERE AND THE KOSHER CONSUMERS COMMENT TO THEIR LOCAL GENERAL MANAGERS THAT THEY ARE VERY EXCITED ABOUT IT. TELL YOUR FRIEND’S ABOUT THE MONEY YOU’RE SAVING AND THEY WILL ALSO SHOP THERE.
100% agree. Cholov Yisroel companies take a big advantages with low product quality and a lot of preservatieves in their items, they do everything to cheat us. From 8 oz to 7 oz, from 6 oz to 5 oz – very quietly they rap their farmer chees in 1/2 pound of paper.
and more, more
if you are correct, why not buy paper goods as aell at the kosher stores?
Reply to #25 You are forgetting about supply and demand. Even if the big retailers eventually stop carrying certain products, as long as there is a demand for them, they will be available. Generally, I agree with the idea that this is better for the consumer and large frum families in particular, having been overcharged for everything for too long. I don’t think the kosher stores have much of a chance competing with the big retailers (even if they purchased as a collective, as mentioned in one of the posts here), the big retailers really beat up the manufacturers on… Read more »
if kosher stores want us to buy from them they have to lower their price. how come when it comes to spending money we have to consider getting our money to a jew , but the store owner who is jew doesn;t think to lower his price for another jew. go costco go horray
if my local stores were selling the same product (meaning: HELLMANS mayo – not mishpacha. and HEINZ ketchup – not gefen) for the same price as costco or cheaper – I would have no prob. I’d rather not buy in bulk due to space in my tiny apartment. But unfortunately the local stores do NOT offer such low prices. The same size Hellmans mayo which is 4.89-6.89 in Costco is 11.99 in the local stores. NO WONDER WE”RE GOING BROKE If I were able to get to walmart and costco more often, I’d save myself alot more money. But the… Read more »
BS”D of course there is nothing wrong with a store offering lower prices and making a buck, the issue here is for us to think what is better for us in the long run? – is costco really making money? if not will they keep the product? – will these stores keep the products indefinitely? if not what do we do when they stop carrying them and our local stores are out of business? they change product from day to day and these are basic staples for us. I’m not recommending either way but this is the question and we… Read more »
Now the largest kosher supermarket in the world… What a bracha!
I shop at Costco, walmart, trader Joes, target etc. Whatever Kosher items I can get there are cheaper. Cereal is 1/2 to 1/3 less, macaroni, ketchup, mayonnaise, oil, sugar etc. are cheaper. Then the Kosher products in Costco are just plain cheaper, Cheese is $8.29 when an identical bag elsewhere is about $14. Gefilte Fish, salmon, frozen Pizza, cold cuts (not lubavitch), Plus all the other household staples like soap, shampoo, detergents, tissues , bags etc. I still end up in the kosher stores as obviously we can’t buy everything out. But the savings are significant, for a family on… Read more »
They are retail establishment in general’s opponent. It’s a very misleading headline. They are great for the Kosher consumer and great for the kosher industry, they are in competition with retailers in general, not their opponents.
I’m in full agreement with number 8! Living on shlichus, the kosher products at Costco are an absolute life saver
“This should be titled “Kosher’s New Ally”. ”
I disagree.
What “Kosher” means in this context is the “Kosher retail Establishment”
they really cut the prices in half.. a block of cheese became 9.99 vs 20 in the kosher store, amnons pizza.. 7.50 vs 15 in the kosher store and so on.. their products keep growing based demand.. if it doesn’t sell, they dx keep it around.. its about time we had REAL competition in the kosher market..
This should be titled “Kosher’s New Ally”.
I think you are wrong.. The Kosher stores raise the price on everything.. In times of distress going to Kosher stores may put a hole in your pocket… If you can get things for MUCH, MUCH, MUCH cheaper why not? Costco also cells in bulk.. People with big families SHOULD shop there. Costco ROCKS!!
Why does Kosher Today employ such bad writers…
Costco does carry Kedem grape juice!
They carry a selection of milk product (cholav Yisroel)
Lots of the candy sold at the kosher stores are not kosher companies IE. fruit roll ups, pringles, chips…. all of this is sold at a fraction of the price at costco
I have a feeling you are not a regular costco shopper, and you should go check it out and see how much money you can save
I must mention though, you can spend all your savings and then some on stuff you never know you needed such as books, movies, clothes etc………..
THEY DON’T CARRY: a- milk products b- specialty items candy, cookies snacks c- you’re talking about staples like chicken, beef and fish and deli meats d- grape juice e – kedem biscuits occassionally a few other items whats going on it people need to make their money stretch and while the store owners don’t have to answer for the high prices they and manufacturers put on their products – they are going to whine and complain if people go to another store to fill up their cupboards? I will certainly go if there is a better deal I have that… Read more »
Its a said thing when people get greedy and charge crazy prices! I am a consumer as well as a business owner. While the kosher food store doesn’t support our family business , I won’t support theirs. One hand washes the other. What about the fact that consumers were stuck paying outragious prices for kosher food because the kosher stores had a monopoly on it and you wanted it you had to pay the price. or go without! Paying 1.75- 2.00 for one stinky yogurt is insane – who can afford to feed a family let alone make a decent… Read more »
it interesting that the article should mention the brooklyn costco
i was in there the other week and when i couldn’t find the meat they usually carry i asked one of their workers and he said they don’t carry it any more as its not worth it for them and they don’t plan on bringing it back
TO #5
costco does accept WIC
the way i see it is.
i dont think the consumers should in any way made to feel guilty for shopping for the best price.
I think halachically it is ok.
I think the underlying issue is any is that the producers of the kosher food should not sell to costco etc.
if anything.
but the bottom line is if this is an issue the rabbonim should be asked as to their opinion and any actions that are needed.
The kosher stores will be forced to adjust their prices to realistic levels. End of conversation
what if you live on shlichus and have no kosher stores! you buy things in costco, walmart and trader joes!
to # 1. Maybe we should get the same Rabanim to paskin that we dont have to pay exorbtant tuitions for our children’s chinuch..???
Grow up already.
The orthodox jewish world, already strapped with huge expenses vis-a-vis their non jewish neighbors will do whatever they need to in order to stretch their hard earned money. The rabbonim can paskin all they want, nobody will care or listen.
Where were your ‘rabbonim” all these years while we getting ripped of by the cholov yisroel companies????
Turnabout is fair play…..
get with the program.
This is great! Competition is always good! I struggle to pay for many expenses every day, including food. It would be nice of you to also consider the kosher consumer who can’t afford the high cost – kosher stores charge. Perhaps small business kosher store owners can join together in partnership to compete with big department stores like Costco or Walmart, an example in crown heights would be for Kahans, Kleins & Kosher corner to buy their products in bulk together so they can compete with empire kosher. besides I don’t think big department stores except wic.
we have to support kosher stores b/c of parnassah, correct? but what about the hundreds of customers that cannot support their families, and live paycheck to paycheck? Who is supporting them? By shopping at these big stores these people are literally saving thousands of dollars a year which can ensure that their families are getting proper nourishment and nutrition, it ensures that they can pay tuition so that many teachers and rabbeim can get paid and also feed their families. It would be sad to see a kosher store owner lose their parnassa, but it would be sadder for hundreds… Read more »
What a foolish comment!
The big stores will never stop selling kosher food so long as people are buying it and they are making money!
Also, local “mom and pop” kosher food stores are notorious for being overpriced! Even the large kosher supermarkets like the Kolel and Pomegranate can’t compete with the Costco prices.
If you feel so strongly about keeping local kosher food stores open, may be you can suggest that they drastically lower their prices.
this is terrible! people should support the kosher stores…
costco and walmart can stop carry these products in a second.
and by that time, perhaps most of the kosher stores will have been shut down!
kosher food is to be bought at kosher stores..
plates and silverware, should be bought at costco etc..
we need the rabannim to step in on this.