Costco’s Kirkland Signature brand drives company growth, WSJ reports

Costco (COST) created store brand Kirkland Signature three decades ago and it is now a linchpin the company’s success that accounts for roughly a third of its approximately $254.5B in annual revenue, the Wall Street Journal’s Sarah Nassauer reports, citing former CEO Jim Sinegal. The move at the time seemed counterintuitive as successful retailers used individual store brands to offer different products, often at the lowest price possible, however Costco consolidated its store brands under Kirkland Signature. “We were kind of flying right in the face of that success story,” said Sinegal. “It kind of simplifies things, and it certainly has told a story to our customers.”