The Friday Checkout: The king of private brands turns 30

Core Insights - Costco has achieved consistent market share gains in the grocery sector over the past five years, largely attributed to the success of its private label brand, Kirkland Signature, which has been in the market for 30 years [2][3]. Group 1: Kirkland Signature Performance - Kirkland Signature generates approximately $86 billion in annual sales, accounting for about one-third of Costco's total revenue [3]. - In comparison, Kroger's private label brands generated $32 billion last year, representing around 25% of its total sales excluding fuel [3]. Group 2: Product Range and Strategy - The Kirkland Signature label encompasses around 600 products across various categories, including batteries, pet food, wine, and bath tissue [4]. - Best-selling products under the Kirkland brand include eggs, bottled water, and butter, which are essential items that drive customer trips to grocery stores [4]. Group 3: Unique Brand Strategy - Costco is recognized as a pioneer in private label branding, emphasizing quality and requiring CEO approval for new product additions to the Kirkland line [5]. - Unlike many retailers that offer multiple private label brands to cater to different market segments, Costco focuses solely on Kirkland Signature, which serves as a significant negotiating tool with suppliers [5][6]. Group 4: Market Position - After 30 years, Kirkland Signature has established itself as a leading private label brand and continues to gain momentum in the market [7].