Costco Wholesale is the latest grocery chain to drop its costco brand after the company was forced to stop selling its food products after the introduction of a competitor.
The chain announced Tuesday that it was ending its contract with Best Buy after more than a year-and-a-half of being in the food business.
The announcement comes as Costco is trying to regain its footing in the market for grocery store snacks.
Best Buy’s $20 per bag price is one of the lowest in the industry, and the company has been losing customers to the likes of Amazon and Walmart.
Costco is not the only grocery chain losing money on its food business after it introduced its competitor.
Other chains like Wal-Mart and Kroger have also been shedding their food business to other markets.
The deal will make Costco the second largest chain of grocery stores in the United States, behind only Walmart.
It will also help the company avoid a big loss in 2019.
The company said it plans to keep a presence in the U.S. as well as in the rest of the world, though it did not say which markets the store will be in.