Costco Marks 30 Years of Kirkland Signature
Costco is marking the 30th anniversary of its Kirkland Signature own brand as the warehouse club continues expanding its private label assortment, which accounts for about one-third of total sales.
Since its launch in the mid-1990s, the Kirkland brand has spread across the store and today can be found in food, beverages, apparel, pet products, home products, and even vacation offerings.
During a May investor conference call to discuss its third-quarter results, company officials reported that overall sales were up 8% and sales of Kirkland Signature products outpaced Costco’s overall sales growth by 0.5%.
“New Kirkland Signature offerings are another way we are delivering more value to members,” said Gary Millership, Costco’s chief financial officer. “These items typically offer members 15% to 20% more value compared to national brand alternatives, with equal or better quality.”
During its current fiscal year, Costco has also lowered prices on select Kirkland Signature products including (as of May) a $2 price drop on the Kirkland Signature 3-Liter Refined Olive Oil ($27.99), Kirkland Signature Organic Peanut Butter (down to $9.99) and Kirkland Signature Tortilla Strips (down to $4.99).
According to a recent article in Costco Connection, the idea of bringing all of Costco’s private-label products under one brand was the brainchild of former CEO Jim Sinegal. Before 1995, Costco had about two dozen private brands on its shelves, including Chelsea and Meridian.
Kirkland Signature was chosen to honor the location of Costco’s headquarters at the time in Kirkland, Washington, although the company would soon relocate to nearby Issaquah. The first products to feature the Kirkland Signature brand were shampoo and vitamins. Today, Costco has more than 1,000 Kirkland Signature trademarks filed worldwide.
As it moves forward to expand its Kirkland Signature assortment, current CEO Ron Vachris says Costco’s mission of continually providing members with quality goods and services at the lowest possible prices, along with its code of ethics, are the two biggest factors in the development of Kirkland Signature items.
“Kirkland Signature is synonymous with our culture and core values,” said Vachris, who personally approves each new Kirkland Signature product. “If you can check those boxes, you are onto something.”
