Guaranteed to meet or exceed
Our signature line of products was developed in 1995 from our first headquarters, then in Kirkland, Washington. We saw a gap where the right product wasn’t available – either because it hadn’t been created yet or because it didn’t represent a value to members – and we developed our own. Costco’s Kirkland Signature products are guaranteed to meet or exceed the quality of major national brands. It’s true with everything from men’s dress shirts to pet food to facial tissue. And, because Kirkland Signature products are exclusive to Costco, it’s yet another reason to become a member!
With Kirkland Signature, Costco can:
Develop popular items with wide appeal to expand sales volume
Control the quality of the product
Drive down prices on national brands
Control the packaging
Achieve pallet efficiencies.
For example, when the jars containing Kirkland Signature cashews were changed from round to square, the number of jars that could fit on a pallet increased from 288 to 432, saving 600 truckloads per year. “We will always be known for name brands such as Michelin and Sony” Jim says, “but we will continue to augment our product offerings with our own Kirkland Signature items. “The working rule followed by Costco buyers is that all Kirkland Signature products must be equal to or better than the national brands, and must offer a savings to our members,” adds Dick DiCerchio.
Another rule is continuous improvement. “We’re constantly looking at Kirkland Signature items, revisiting them with an eye to making them better,” says Jeff Lyons, Costco’s senior vice president of fresh foods.
In the traditional marketplace, brands are built over the years with expensive advertising campaigns built around cornerstone products. In contrast, the Kirkland Signature brand has grown by this formula: Offer high-quality products at great prices, and let the members decide. “With Kirkland Signature, the focus is always on quality,” says Jeff. In other words, the perfect product, from scratch.