Kirkland Signature Private Label – Powering Costco
| Case Code: MKTG422
Case Length: 12 Pages
Pub Date: 2020
Teaching Note: Available
| Price: Rs.300
Organization : Costco Wholesale Corporation
Countries : United States
Themes: Brand Loyalty/ Brand Strategy/ Brand Differentiation/Consumer Marketing
Abstract Case Intro 1 Case Intro 2 Excerpts
In 2019, Costco Wholesale Corporation (Costco), a US-based membership warehouse club , reported that its private label brand ‘Kirkland Signature’ (Kirkland), introduced in 1995, had contributed to over a quarter of its registered net sales of US$152.7 billion. The private label contributed US$39 billion to net sales of US$149 billion in 2018 and US$35 billion to the overall net sales of US$138 billion in 2017. The Kirkland private label also accounted for nearly 30% of all the private-label grocery business in the US, according to estimates from FMI and IRI.
As a members-only warehouse club, Costco saw a steady rise in its membership from 44.6 million in 2015 to 539 million members in 2019. Further, the company registered a membership renewal rate of 91% in the US and Canada, and 88% worldwide in 2019...
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