By Mostafa Ahmadi, Senior Data Scientist at Servus Credit Union
I’ve always admired Costco’s simplicity, but I didn’t realise how bold their Kirkland Signature strategy really was until I dug into the story.
In the early ’90s, Costco made a risky move:
Instead of launching multiple private label brands like everyone else, they bet on just one – Kirkland Signature. At the time, that went against all industry logic.
Why it worked:
- Kirkland now accounts for ~1/3 of Costco’s total sales, with $86bn in revenue in 2024
- Private labels like Kirkland are growing 4x faster than national brands in 2024
- Costco limits markup to 14% and allows slightly more for Kirkland, still far below the industry average
- Costco carries just ~4,000 SKUs, compared to ~140,000 at other retailers – making shelf space ultra-competitive
All in all, it’s a brilliant case of how doing less, with more intention, can beat doing more.
