One of the biggest factors behind Costco’s success is Kirkland Signature, the company’s private-label brand that has quietly become a powerhouse in the retail world. From innovative product sourcing to surprising collaborations, Kirkland Signature plays a far greater role in the industry than most people assume. Costco’s business model is also filled with hidden details that set it apart from traditional retailers. These behind-the-scenes strategies not only help the company maintain its competitive edge but also contribute to its cult-like following. Here are some fascinating things you probably did not know about Costco and its iconic Kirkland Signature brand.
Contents
- 1 Toilet Paper is the Brand’s All-Time Bestseller
- 2 Kirkland Signature is More Profitable Than Big-Name Companies
- 3 Kirkland Signature Products Are Sold on Amazon
- 4 The Brand is Named After Costco’s Former Headquarters
- 5 Kirkland Signature is Not Costco’s First Private Brand
- 6 Some Kirkland Signature Products Are Made by Big Brands
- 7 Kirkland Signature Stretch-Tite Plastic Food Wrap Is Legendary
- 8 Kirkland Signature Hard Seltzer Is a Hit in the Beverage Market
- 9 More From RetailShout
- 10 14 Fresh Nordstrom Rack Arrivals You Will Want This Month
- 11 13 Fresh Dollar Tree Finds That Are Total Steals This Month
Toilet Paper is the Brand’s All-Time Bestseller
Kirkland Signature’s best-selling product is not food, electronics, or even household cleaners, it is toilet paper. Costco sells over a billion rolls of Kirkland Bath Tissue annually, generating around $400 million in revenue. The company takes toilet paper quality seriously, testing it rigorously in specialized labs. Experts evaluate its texture, color, and durability using high-tech equipment and even a simple “scrunch and bunch” test. Interestingly, Costco does not manufacture its own toilet paper but instead partners with well-known brands. Past suppliers included Kimberly-Clark, while the current manufacturer is believed to be Georgia Pacific, which also produces Angel Soft and Sparkle.
Kirkland Signature is More Profitable Than Big-Name Companies
Despite being a private label, Kirkland Signature generates more revenue than major corporations like Hershey’s and Coca-Cola. Its strong sales come from a combination of high-quality products, lower prices, and Costco’s loyal customer base. Unlike traditional brands that spend heavily on marketing, Kirkland relies on Costco’s reputation and word-of-mouth promotion. This strategy allows the brand to keep costs low while maintaining high profit margins. Kirkland Signature products cover a wide range of categories, from grocery items to luxury goods like Champagne. Thanks to its enormous success, the brand plays a significant role in Costco’s overall business strategy.
Kirkland Signature Products Are Sold on Amazon
Although Costco operates on a strict membership model, Kirkland Signature products can also be found on Amazon. This makes them accessible to non-members, expanding the brand’s reach beyond Costco’s warehouse doors. However, Kirkland items on Amazon are usually priced higher than in Costco stores. For example, a two-pack of Kirkland Organic Creamy Peanut Butter costs about $19 on Amazon, compared to just $12.99 at Costco. The price difference means that shopping at Costco is still the best deal for members, but Amazon offers a convenient alternative for those without a membership. In some cases, purchasing through Amazon may also be beneficial when Costco imposes purchase limits on certain products.
The Brand is Named After Costco’s Former Headquarters
Kirkland Signature gets its name from Kirkland, Washington, where Costco’s headquarters were located in 1995. When launching the private label, the company originally wanted to name it “Seattle Signature” to honor the location of its first store. However, the trademark application was rejected, forcing Costco to rethink its branding. A staff member suggested “Kirkland Signature,” and the name stuck, even after the company relocated its headquarters to Issaquah. Costco co-founder Jim Sinegal later joked that they did not name it “Issaquah Signature” because nobody could spell Issaquah. Today, the Kirkland Signature brand is recognized globally, even though the company no longer operates from its namesake city.
Kirkland Signature is Not Costco’s First Private Brand
Before Kirkland Signature existed, Costco had several smaller private labels for different product categories. For example, Simply Soda was the company’s version of Coca-Cola, sold in a red can with a cursive logo. Other private brands covered products like toilet paper, laundry detergent, and pet food. In 1995, Costco decided to consolidate all of its private labels under one name to simplify branding and cut production costs. The shift to a single private brand also helped strengthen customer loyalty and eliminate decision fatigue. Today, Kirkland Signature is Costco’s only private label, covering a vast range of products under one trusted name.
Some Kirkland Signature Products Are Made by Big Brands
Before developing its own in-house products, Costco often invited established manufacturers to create Kirkland Signature items, ensuring quality with a trusted name behind them. For instance, Duracell produces Kirkland batteries, while Jelly Belly collaborates on its famous jelly beans, and even renowned coffee roasters help craft Kirkland’s espresso blends. This strategic co-branding reassures consumers that they’re getting the same quality as national brands but at a significantly lower price. It also allows Costco to leverage the expertise of companies with decades of experience in their respective fields. The approach not only boosts consumer confidence but also streamlines production, keeping costs down without compromising standards. This partnership model is a key reason behind the enduring popularity and reputation of the Kirkland Signature brand.
Kirkland Signature Stretch-Tite Plastic Food Wrap Is Legendary
One standout product that has achieved almost cult status among Costco shoppers is the Kirkland Signature Stretch-Tite Plastic Food Wrap. A single roll is capable of covering an astonishing 3,000 square feet, far exceeding the size of typical grocery-store offerings. Shoppers frequently share stories online about how a roll lasts for years, with some even passing it down through generations. Its superior durability and exceptional cling make it an indispensable kitchen staple for preserving leftovers and keeping food fresh. The wrap’s remarkable performance has transformed it into a symbol of both quality and value within the Kirkland lineup. This iconic product perfectly exemplifies how everyday items can become legendary when backed by consistent quality and innovative design.
Kirkland Signature Hard Seltzer Is a Hit in the Beverage Market
Introduced in September 2020, Kirkland Signature Hard Seltzer has quickly carved out its niche in the competitive beverage market. Manufactured by Patco specifically for Costco, it comes in a variety of enticing flavors such as black cherry, grapefruit, lime, and mango. The hard seltzer offers a crisp, refreshing taste at 5% ABV, making it an ideal choice for summer gatherings and casual sipping. Its launch not only tapped into the growing trend for hard seltzers but also reinforced the Kirkland promise of premium quality at an accessible price. Consumers appreciate that despite its affordable cost, the hard seltzer stands toe-to-toe with more expensive national brands. This innovative addition to the Kirkland lineup underscores Costco’s ability to consistently surprise shoppers with products that blend quality, trendiness, and unbeatable value.
This article originally appeared on RetailShout.
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