Costco prices much less than Whole Foods, report says

Citing a JPMorgan analyst, CNBC reports that Costco’s grocery products cost a “whopping” 58 percent less than Amazon-owned Whole Foods Markets’ offerings.

"[Costco] offers an unquestioned value prop with the best pricing, curated assortment, strong private label offering and treasure hunt atmosphere," JPMorgan analyst Christopher Horvers wrote in a note to clients as reported by CNBC.

According to the report, Costco and Whole Foods share the least of their merchandise assortments in common, while Costco and Walmart see the most overlap in grocery SKUs.

But CBNC also noted that “being a low-price leader comes with pros and cons. Investing in discounting can squeeze a retailer's profit, and that's what some investors worry about, as it relates to Costco.”

According to Horvers, Walmart's store brands turned out to be the cheapest among Costco, Whole Foods and other retailers when compared with national brands. But Costco's Kirkland Signature nameplate is a stronger player than its peers when it comes to quality, Horvers noted in the CNBC report.