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The simplest answer to this is Kirkland Signature. It's a very genius idea that Amazon is starting to copy now with AmazonBasics, but Costco has been doing it f
by freeqaz 4y ago
The simplest answer to this is Kirkland Signature. It's a very genius idea that Amazon is starting to copy now with AmazonBasics, but Costco has been doing it for years.
This article explains it better than I can: https://every.to/napkin-math/how-costco-convinces-brands-to-cannibalize-722932 https://every.to/napkin-math/how-costco-convinces-brands-to-...
TL;DR: If you buy something like Grey Goose vodka, it's going to be the same product as the Kirkland Signature version on the shelf next to it. It is often literally from the same factory. Costco AND Grey Goose make more money by being able to sell to multiple market segments.
Read that article. It's genius and one of the many reasons I love shop at Costco.
- JumpCrisscross 4y agoThe source for this article’s core claim is a pair of Reddit comments, FYI.
- pirate787 4y agoStore brands (private label brands owned by the retailer) have been around forever and are not a Costco innovation. Every US grocery store and most big box stores sell them.