Private label carries Costco
Costco, the warehouse club which originated in the US, has continued to grow sales. This has been attributed to the depth of their range of low-cost private label products, through food and household ranges. The company have reported a marked increases in sales of its Kirkland Signature range - their own-brand products, which accounts for almost 20 per cent of sales at Costco.
Richard Galanti, chief financial officer, said that the share of Kirkland Signature goods sold at Costco had increased by about 3 percentage points over the past six months, compared with a usual level of annual growth of about 1 per cent.
He went on to say that “In this economy despite many items that have great brand loyalty and great quality, Kirkland Signature items continue to show increased unit penetration,”
The strong growth in private label at Costco mirrors similar strength in “own-brand” lines at other retailers, both in the UK and U.S.
Costco, sells in bulk to both businesses and households via a card membership scheme.
Source: The Financial Times
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