[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Mathias Merrill [@Compound_life_](/creator/twitter/Compound_life_) on x XXX followers Created: 2025-06-05 06:56:53 UTC Costco analysis - Thoughts on Kirkland Signature Kirkland Signature, like Costco itself, has to “provide the most competitive values” meaning top perceived quality for the price compared to what you’d get elsewhere. How do they pull that off? Sure, scale and brand help. But it really comes down to culture and leadership. They’re insanely quality-focused. Every decision needs “green ink approval" from the CEO. Every item is carefully selected and reviewed as equal or better than excisting products. Having a private label that customers view as great value gives Costco massive leverage. If Kirkland enters a category, brand-name suppliers feel the heat. That pressure = better deals, especially since Costco only carries ~4,000 SKUs. Just 1–3 products per category. If one is Kirkland, the rest are fighting for shelf space. And when it comes to production? Costco can flip the script: “Want shelf space for your brand? Then you need to manufacture our private label competitor too.” They also mark up Kirkland Signature to XX% gross margins, X% higher than the mark up of national brands. The more private label penetration, the higher the margins. All else equal. I believe that priavte label penetration will continue to rise over the coming decade, but in a very controlled and diciplined manner. More private label will come when it makes sense  XXX engagements  **Related Topics** [ink](/topic/ink) [kirkland signature](/topic/kirkland-signature) [costco](/topic/costco) [stocks consumer defensive](/topic/stocks-consumer-defensive) [Post Link](https://x.com/Compound_life_/status/1930519174771556572)
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Mathias Merrill @Compound_life_ on x XXX followers
Created: 2025-06-05 06:56:53 UTC
Costco analysis - Thoughts on Kirkland Signature
Kirkland Signature, like Costco itself, has to “provide the most competitive values” meaning top perceived quality for the price compared to what you’d get elsewhere.
How do they pull that off? Sure, scale and brand help. But it really comes down to culture and leadership. They’re insanely quality-focused. Every decision needs “green ink approval" from the CEO. Every item is carefully selected and reviewed as equal or better than excisting products.
Having a private label that customers view as great value gives Costco massive leverage. If Kirkland enters a category, brand-name suppliers feel the heat. That pressure = better deals, especially since Costco only carries ~4,000 SKUs. Just 1–3 products per category. If one is Kirkland, the rest are fighting for shelf space.
And when it comes to production? Costco can flip the script: “Want shelf space for your brand? Then you need to manufacture our private label competitor too.”
They also mark up Kirkland Signature to XX% gross margins, X% higher than the mark up of national brands. The more private label penetration, the higher the margins. All else equal.
I believe that priavte label penetration will continue to rise over the coming decade, but in a very controlled and diciplined manner. More private label will come when it makes sense
XXX engagements
Related Topics ink kirkland signature costco stocks consumer defensive