No. of Recommendations: 10
Costco Wholesale's Kirkland Signature brand continues to be a major force in the retail sector. Costco launched the brand in 1995, consolidating its fragmented private label products under a single name inspired by its original headquarters in Kirkland, Washington. Before Kirkland, Costco used around 30 different private label names, but co-founder Jim Sinegal sought a unified brand to ensure consistency and instant recognition for shoppers. Kirkland Signature’s rollout began with shampoo and vitamins, and the brand gradually expanded to cover a wide range of categories, from groceries to apparel, to enhance Costco's (COST) reputation for value.
Kirkland Signature is now central to Costco's (COST) earnings firepower, generating about $86 billion in annual sales to account for about one-third of the company’s total revenue. That revenue tally puts Kirkland's in the same ballpark as Lowe's (LOW) and Procter & Gamble (PG). Analysts have noted that Kirkland's success is rooted in its ability to offer high-quality products, often manufactured by well-known suppliers, at prices lower than national brands. Importantly, the brand's presence gives Costco (COST) significant leverage in supplier negotiations, allowing it to keep prices low and margins healthy. Kirkland products also drive customer loyalty and traffic, which reinforces Costco's (COST) membership model and helps the retailer maintain industry-leading renewal rates.
https://seekingalpha.com/news/4449907-costcos-kirk... 