Costco Wholesale, one of the largest membership wholesale retailers in the US and in the world, has confirmed the mutual decision to end sales of Apple products in its wholesale clubs.
In an interview with Seattle Times, CFO of Costco Wholesale Richard Galanti explains, “Costco had sold iPods and pre-loaded iTunes cards for years, although never at huge discounts; and Apple never allowed Costco to sell its products online like other retailers. The past couple months, we agreed to wind down."
Although Costco is in the process of phasing out Apple products, it does not appear to unhinge their economic recovery from the ever-looming recession. Costco reported an 11 percent growth in revenue in their latest fiscal quarter and a continued momentum going into the holiday season.
This isn’t the first time Costco has cut ties with a widely popular name brand. Back in November 2009, Costco made a similar decision to end the sales of Coca-Cola products in its warehouses after a pricing dispute, which was later resolved after the two companies were able to come to a new agreement.
Who knows if a similar situation will occur as Apple may feel the repercussions of its departure from Costco.