Costco, Trader Joe’s private labels boost customer traffic

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Costco, Trader Joe’s private labels boost customer traffic

10/23/2019
Costco's Kirkland Signature rotisserie chicken costs only $4.99.

Issaquah, Wash.-based Costco and Monrovia, Calif.-based Trader Joe’s are driving in-store foot traffic with their private label lines, according to a report by Numerator, a market insights company. 

Last year, Costco’s Kirkland Signature helped the company rack in more than $39 billion in sales last year, while Trader Joe’s shelves are primarily stocked with its private brand products, helping both companies differentiate themselves from the competition by offering products that customers can only get in each store. 

According to the report, buyers of private brand items, in general, are more loyal to the retailer they purchased the product from. The report found that 33.2% of Costco shoppers buy the company’s popular Kirkland Signature rotisserie chicken and 6.1% of Trader Joe’s shoppers buy the cauliflower gnocchi— these groups appear to be heavy shoppers at their respective retailers. 

Both groups shop more frequently and spend more than the average shopper at each given retailer. Rotisserie chicken buyers shop at Costco 1.7x more frequently, with a 1.7x higher buy rate, and cauliflower gnocchi buyers shop at Trader Joe’s 2.2x more frequently with a 2.7x higher buy rate, the report found. 

Not only do they shop and spend more, but they are also more loyal. Costco holds a 22% grocery share of wallet among their rotisserie chicken buyers, significantly higher than the average Costco shopper, who only spend 15.1% of their grocery dollars at Costco. The same held true for cauliflower gnocchi buyers at Trader Joe’s, who spent 10.6% of their grocery dollars at Trader Joe’s, versus the average shopper who only spends 4.6%. 

To read the report, click here

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