The world’s biggest maker of foodware is now a pawn shop in the global craze for cheaper, more environmentally friendly and more convenient food.
Costco has been a pawn in a global battle between makers of high-end kitchenware and the makers of more economical, lower-end products, like the kitchenware they sell at home.
In an interview with CNBC, the company’s chief executive, Craig Federighi, said his company is “at the end of its rope” in the US and Europe and that it would be better off in India and China.
Costcos own a huge share of the market for high-priced kitchenware that is used by millions of people around the world, and many of its brands have seen their popularity soar.
But it is unclear how the company will survive in India.
CostCo shares closed down 4.2% at $37.20 on Monday.
It has more than $3 billion in cash and a market value of about $3.2 billion.
The company had been selling its kitchenware online for about a year when Federighis last year decided to sell it to a US company.
He said he planned to sell to an American buyer to avoid having to import ingredients.
CostCO shares have gained more than 8% this year, thanks to a boom in the number of people buying them online.
The stock has gained as much as 13% this month, while the S&P 500 index has gained more then 4%.
Costco shares rose 2.4% in early trading to $39.98, a price above its 52-week high of $38.42 set on September 21.
The S&am index of small companies rose 3.5%.
The rise in the stock came after FederighIs comments on the Chinese consumer who was buying cheap Chinese food.
He told CNBC that consumers are buying cheaper food in China because the food there is better and cheaper.
CostCostcos shares closed up 1.7% to $43.50, after falling by 3.2%.
The company said the US market is still very attractive to it and said it expects to grow its sales by 20% this quarter.