Costco went against industry standards in 1995 with the creation of its private label, Kirkland Signature. With $86 billion in sales last year, Kirkland is now a bigger brand than Proctor & Gamble and Kraft-Heinz. Compared with other mass retailers like Target and Walmart, which have multiple brands, club channels like Costco and Sam’s Club are winning the private-label food and beverage space by consolidating.
WSJ breaks down why Kirkland is now the retail behemoth’s secret weapon.
Chapters:
0:00 Costco’s private label
0:43 Why Kirkland was created
3:03 Consolidating under one brand
4:05 Impact on Costco and the industry
5:03 Impact on suppliers
6:28 Challenges ahead
#Costco #Business #WSJ
