Sales of the Kirkland brand, Costco’s generic line of home and food products, topped $39 billion during 2018. This puts competitors like Walmart and Amazon in a less-than-ideal position. The Kirkland brand is a high-quality and sought-after store brand with a discount price tag that consumers love.
Warren Buffett says that this brand, in particular, presents challenges to name-brand companies like Kraft. He indicated in recent comments about Costco’s success that many brands are now in a weaker bargaining position than they were just a few years ago due to store brands that combine the quality and price point sought by consumers.
The stigma that store brand products aren’t as good as name brand products has lifted in recent years, partly due to the recession of 2008. Many households had to trim expenses just to pay their bills. Generic, or store brand products, can be as much as 30% less expensive than comparable name brand products.
Vitamins and supplements are among the store-brand favorites that keep Costco members coming back. The store is also known for its deep discounts on electronics. Costco shoppers considering a Dyson vacuum should pick one up, soon. The high-end latest model is discounted by $80 right now. The store also has promotions on food sealers and Nutella during the month of February.
