Costco: a serious competitor in the retail space
Warren Buffett compares Kraft Heinz’s recent poor quarterly report to Costco’s private brand, Kirkland Signature.
According to Business Insider, Buffett believes that the consumer packaged goods (CPG) industry is losing its steam due to the successful adaptation to changing consumer demands by retailers, such as Walmart and Costco, which both have successful private brands. The success of these private brands is due to the combination of a loss of stigma surrounding generic brands, as well as lower prices, Buffett said.
To read the Business Insider article, click here.