Costco brings back custard cream puffs in Japan

The dessert, called the custard cream puff, first appeared late last year and was described by shoppers as unusually large, with a thick cookie-style shell and dense custard filling. According to the Japanese-language report, it disappeared from shelves for several months before returning in August, then went on promotion through Sept. 13.

For investors, the episode is another reminder that Costco’s business depends less on premium markups than on its ability to create urgency around limited-stock items that move fast and reinforce the retailer’s pricing power. That strategy can lift foot traffic and basket sizes even when the company is not pushing full-price sales.

Costco shares have been under pressure lately, closing at $915.74 on Sept. 4, below both its 50-day moving average of $943.01 and 200-day moving average of $957.90. The stock’s RSI reading of 37.5 points to weak momentum, though the latest promotion underscores the kind of value-led merchandising that can help stabilize demand.

With U.S. households still sensitive to food prices and competitors such as Walmart leaning on grocery traffic, Costco’s limited-time markdowns remain a key lever for member retention. The next catalyst will be the warehouse chain’s ability to keep drawing shoppers with similarly shareable, high-value items heading into the holiday season.