Prices at Costco have increased by as much as 26% for some items, undermining their image as the cheaper place to shop in Iceland.
In a pricing poll conducted by Fréttablaðið, in conjunction with the Icelandic Confederation of Labour Unions, it has come to light that most of the 15 items they reviewed have increased in price between last July and last September.
The most significant increase was with 400g packs of Smjörvi margarine, which went from 379 ISK to 479 ISK over this period of time. In fact, nine of the 15 items reviewed increased in price, while four items stayed unchanged, and only two items – red apples and raw skyr – decreased in price.
The news may come as a surprise to those who followed the opening of Costco here in Iceland.
At the time, the American chain store was offering prices that cut far below would Icelandic shops were offering, leading many to worry that domestic retailers would be unable to compete. While Costco may still offer a greater variety of goods than Icelandic grocery stores, their prices appear to be trending towards being more in line with what consumers find on offer at other shops in the country.