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Costco beaten again in America's grocery wars... but it's taken a huge bite out of the competition
Costco beaten again in America's grocery wars... but it's taken a huge bite out of the competition

Daily Mail​

time01-05-2025

  • Business
  • Daily Mail​

Costco beaten again in America's grocery wars... but it's taken a huge bite out of the competition

Costco is still missing out on the top spot in America's grocery wars, but the battle isn't over yet. The membership-based warehouse giant is gaining ground on grocery king Walmart. Walmart now hoovers up one in five dollars spent on groceries in America, according to new data from consumer analytics firm Numerator. If Sam's Club, Walmart's answer to Costco, is included, then that figure rises to a staggering one in four dollars. Walmart may be twice the size of its nearest rival Kroger, but it's Costco that rivals are losing their business to. Costco has been snapping up grocery spending since 2019, increasing its share of the market from 7.6 percent in 2023 to 8.5 percent now, Business Insider reported. Since Costco focuses on offering bulk quantities of a limited number of products, it it unlikely to ever take up the biggest share of the grocery market, but it is positioned to take more of it. Costco's focus on value will be a draw for consumers looking to cut back their spending amid an uncertain economy and increased costs from tariffs. Costco also sells a wide range of products which tend to have higher margins than groceries, helping to boost the company's bottom line. Costco's success has also been attributed the success of its Kirkland brand. 'Costco is leveraging the fact that their entire store and organization are a single brand,' industry expert Gary Sankary recently told The Street. 'Watching big boxes cycle through the process of introducing and retiring their owned brand labels every few years to convince customers that new is better, at the same time, is confusing and, in many cases, dilutes their brand.' 'The Kirkland brand quality is not by any means diluted just because it is private label,' retail consultant Robert Amster agreed. A recent success story is the $13.99 Kirkland 12-pack of Helles-Style Lager that has received rave reviews. Made by the Deschutes Brewery in Bend, Oregon, the German-style lager was released exclusively in Costco in November. The beer is based on a recipe that won a gold medal at 2023's Great American Beer Festival. Costco's focus on value will be a draw for consumers looking to cut back their spending amid an uncertain economy and increased costs from tariffs It is now sold in every state except Texas, and a new version will be released annually. Other Costco products that have received expert approval include the award-winning Kirkland Signature Coastal Cheddar Cheese. The 15-month-aged cheese, made at a farm on the UK's Dorset coast, costs just $10 for a two-pound block. Costco members also enjoy a range of perks including access to free hearing screenings, a generous returns policy and much-loved food court deals. As well as the legendary $1.50 hot dog and soda offering Costco recently reintroduced its hot turkey and provolone sandwich.

Costco fans love Kirkland products except for a standard household item: 'Absolute garbage product'
Costco fans love Kirkland products except for a standard household item: 'Absolute garbage product'

Daily Mail​

time22-04-2025

  • Business
  • Daily Mail​

Costco fans love Kirkland products except for a standard household item: 'Absolute garbage product'

Costco's Kirkland Signature is more than just a generic brand — shoppers revere the private label's products with near cult-like adoration. For years, fans have praised hundreds of household and grocery items: its popular rotisserie chicken, vodka, trash bags, stretch wrap, and men's underwear have all drawn obsessive praise. But despite the massive goodwill paid toward Kirkland Signature, some products are comparative duds, according to shoppers on the internet. One item in particular keeps showing up in Reddit threads and product reviews for all the wrong reasons: the toilet paper. Across forums and comment sections, shoppers have complained that it sheds excessive lint and feels cheap. 'Costco said "up yours,"' one commenter joked. 'Both figuratively and literally.' The widely available two-ply option comes in bulk packaging — 30 rolls that add up to 380 sheets per roll for $25. But according to a number of reviews, the value might not be worth the trade-off. Even shoppers on the product's review page have panned the toilet paper. 'Absolute garbage product,' the top-rated comment on Costco's webpage said. 'It's so thin that the sheets can tear apart randomly and just shred.' Multiple shoppers also allege that the product's quality has faltered since before the pandemic. 'Have used it for years, but it's now awful,' another commenter said in a separate Reddit thread. 'Wish Costco would step up its game!' The toilet paper is a surprising supposed oversight for the massively popular members-only store. Kirkland Signature has built a massive fanbase online, roping in customers with bargain-basement deals and dupe-like quality. Shoppers have posted social clips of Lululemon pant look-alikes, dupes Chick-Fil-A chicken, and even Hoka-esque sneakers. Costco has announced plans to open several new stores in the US this year Other Costco products that have received expert approval include the award-winning Kirkland Signature Coastal Cheddar Cheese. Recently Slice Soda, a lemon-lime soda originally described as 'Pepsi's answer to Sprite' became a hit after it appeared on Costco shelves again for the first time in fifteen years. But even if shoppers purchase clothes, grocery items, or toilet paper that they don't like, Costco has a secret sauce that also keeps customers coming back for more shopping. The brand has an expansive return policy that allows shoppers to return items, even if they're half consumed. 'We guarantee your satisfaction on every product we sell, and will refund your purchase price,' the brand said, with a few minor exceptions. Plus, shoppers love the ever-changing food court that features the iconic $1.50 hot dog. The policies has kept customers coming back to the store for years, even when the brand raised its membership prices last year. Despite the higher consumer price, Costco is opening a handful of new stores in 2025 because it sees continuing growth in its future. southern grocery chain H-E-B, didn't immediately respond.

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