“Shrinkflation” at Costco

There are several terms or phrases in common parlance that I don’t love due to how often they are used (e.g., pivot; intentional). “Shrinkflation” falls into this category. However, because it is a common reference point, I will use it here. It refers to when items shrink in size or quantity but the price stays the same or even goes up. It occurs to enable companies to maintain their profit margins.

I have mentioned off hand in other posts (when just commenting on item sizes) that items used to be larger (e.g., ice cream (Costco Wish List 2); yogurt (9 Best Costco Breakfast Foods for Weight Loss). Other items that have shrunk in size orange juice (those cartons just keep getting skinnier), bags of candy (e.g., a one pound bag on M&Ms is now 10 ounces). I actually never associated shrinkflation with Costco because they continue to sell even commonly shrunk items at the original size (e.g., ice cream in actual half gallon cartons (Product Review: Kirkland Super Premium Vanilla Ice Cream)). However, I came across a recent article discussing the concept at Costco. It provided a general overview of why and how stores may engage in shrinkflation, items at Costco that may have shrunk, and other items in general that may have shrunk and how to identify them. 

The article explains that companies often engage in shrinkflation as a way to avoid raising prices. I imagine that increase in costs are more noticeable than a decrease in product quantity. Therefore, shrinkflation is a sneakier way to maintain profit margins. However, many prices have increased over time too. Actually, when thinking about items at Costco, one of the most noticeable price increase was on eggs. Eggs got much more expensive everywhere. I wonder if this is not only due to them just being more expensive to source but also to there not really being a way to hide a size change. It would be incredibly obvious if a dozen eggs became ten, whereas a decrease from 32 to 28 ounces is less obvious. So, for most items in which reducing the quantity is not immediately obvious, rather than charge more, stores charge the same amount but reduce the amount you get. 

The author points out that there may be changes in not only the sizes but also the packaging. She mentions that glass containers may now be plastic. I have commented in the past about the switch from plastic jars to bags for some items (Product Review: Kirkland Signature Extra Fancy Unsalted Mixed Nuts). Sure, it is better for the environment but also cheaper. 

As examples of shrinkflation at Costco, the article mentions eight items that seem to have decreased in size.

1. Crest Toothpaste

Apparently, Crest 3D White Advanced Toothpaste is now often 5.2 ounces (down from 6 ounces). 

I buy Colgate toothpaste (and generally at BJ’s) but now I want to check the size. However, I realize that one difficulty I might have with spotting shrinkflation is that I may never have known (or can’t remember) the original size. I think that a tip off is likely what seems like a random size. I imagine most items generally started at a standard size (e.g., half gallon; half pound). Therefore, items that are “odd sizes” (e.g., 49 ounces) have likely undergone a decrease. 

2. Dixie Ultra Paper Plates

The article points out that the Dixie Ultra 8.5-inch plates used to come in a pack of 285 but are now sold in packs of 240. 

I do use these plates and again would not have paid much attention to the original to know the shift. I imagine it was originally 300.

3. Dove Body Wash

The author mentions the change in Dove Deep Moisture Body Wash from 24 to 23 ounces.

I have not bought this item but now I’m tempted to check shampoo bottles (Product Review: Shea Moisure 100% Extra Virgin Coconut Oil Shampoo and Conditioner).

4. Gillette Mach3 Razor Cartridges

The Gillette razor cartridges have also undergone shrinkflation, with fewer in the pack.

I don’t buy these. I wonder if a change in number (e.g., razors) of items is more noticeable than a change in amount (e.g., ounces of body wash) of a product.

5. Kirkland Signature Organic Medium Salsa

According to the article, the Costco brand salsa has shrunk from 38 to 35 ounces.

I have never bought this salsa. However, it makes sense that companies decrease these products. Obviously, the larger the item to begin with, the easier it is to hide a decrease. For example, a three ounce decrease in an eight ounce item is more noticeable than in a 38 ounce item. 

6. Scott Shop Towels

The author mentions that paper products at Costco may be less plentiful than in the past

For example, Scot Shop Towels have decreased from 43.6 square feet to 39.5 square feet per roll.

I buy the Kirkland paper towels but will now check.

7. Windex Glass Cleaner

Apparently Costco’s spray bottle of Windex cleaner and a backup refill has decreased from  208 to 201 fluid ounces for the set. 

Again, it is much easier to hide the decrease with larger items.

8. Haagen-Dazs Ice Cream Bars

The author mentions that, although the package shows the same amount of product, Costco members have noticed that the ice cream bars are smaller and contain fewer calories than in the past. 

I would think it is required to put the actual size on the package, so if this decrease is true, I don’t know how a company could get away with it. However, the decrease has not been confirmed.

In addition to explaining the concept of shrinkflation, and Costco examples, the article points out ways to be aware of this marketing strategy.

Toilet paper rolls aren’t as plump

The article suggests looking at the package to check if the number of sheets per roll are the same as they used to be. 

Just as with paper towels discussed above, I would not think to check the number of sheets if the packages look the same.

Less cereal in the box

According to the article, although the outer box may remain the same size, there may be less central inside. Primary notice that the box no longer lasts as long as it used to. 

Throughout my life, I have seen the note that  “contents may have settled during shipping” as a way to explain the large amount of air in the bags of food (e.g., potato chips) many times. I can therefore easily see how people may not notice decreased in actual product if the outer packaging looks the same. In addition, unless (as I mentioned with eggs above), unless it is a reduction in number of items (e.g., 22 vs 25 cookies per pack), it is harder to know it is smaller (unless people strictly manage portions and know how many servings they used to get from a package vs how many they get now).

Snack bags with fewer treats

The author cautions that, although snack bags (e.g., chips) might seem like a good deal, there may be fewer of the snacks in each bag than in the past. 

I don’t tend to buy snack packs as I don’t like paying more for the convenience vs just making smaller packs myself. However, thinking about the chip bags or fruit snacks growing up, I can imagine that they now have fewer of the items inside than the older versions.

Reduced quantity of frozen foods

Other items that may have shrunk in size but not cost are frozen meals or bags of vegetables.

I don’t eat many frozen meals but I used to like them. I find it hard to imagine that they could even could be much smaller! They were never filling to begin with.

Smaller bottles of condiments

Apparently it is common for condiment containers to be smaller than in the past. 

I actually don’t use many condiments, so I have not noticed these decreases. However, just as with the orange juice I mentioned above, I can see how shapes of bottles could be a manifestation of this decrease. 

Dwindling sizes of household cleaners:

Another example of shrinkflation mentioned in the article is cleaning products (e.g., laundry detergent; dish soap). 

Again, when packaging looks the same, and especially when large items, I am unlikely to notice a change 

Shrinking meat portions

The author also comments on the decrease in meat and poultry packages.

I don’t buy meat. However, it seems that the same pattern for other items would apply regarding being less likely to notice if packaging is the same. For buying certain cuts of meat or fresh meat at a deli counter, it seems more difficult for stores to get away with a decrease in amount without a decrease in price without customers noticing.

Discontinued items: 

The article reports that, if unable to sell items at a good deal without significant decrease in amount, Costco might stop carrying the products. The result of items being discontinued is that members do not have as many options and may have to buy more expensive versions of items.

I am mixed on the benefits of discontinuing items when unable to balance shrinkflation with customer satisfaction. On the one hand, I have made it clear that I am disappointed when Costco discontinues my favorite items (It’s Gone? Discontinued Products). However, I trust Costco and value their business practices. Therefore, I would prefer to not feel “tricked” by Costco, even if it means they no longer carry certain items. On the other hand, because even items affected by shrinkflation are still likely to be less expensive at Costco than at other stores, I want to buy them there if I really want the item. 

The article summarizes shrinkflation at Costco (and elsewhere) by cautioning that its effects add up over time. The author encourages consumers to be aware of the strategies used by stores and to pay attention to the size of items and costs. 

Do you pay attention to shrinkflation? Have you noticed this phenomenon at Costco? On which products?

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