Prices of Branded Items at Costco are Going Down?

According to this report at SuperMarketNews.com, "(Costco) said yesterday consumer packaged goods manufacturers are starting to reduce prices, possibly in reaction to rising private-label sales".

Richard A. Galanti, executive vice president and chief financial officer, is reported to said that Costco has seen in private label penetration relative to brands during the current fiscal year increases at 10% to 15%. Private labels are usually priced lower than branded items. Galanti said, "The branded companies are not passing all the savings back yet, but we're starting to see them do so."