From the Trading Post to Amazon · Episode 9 of 12 · 19 min
How Kirkland Signature Replaces the Brands It Sells
Every Costco member has watched it happen: a national brand does well, a Kirkland Signature version appears beside it, and the original disappears. The episode traces that lever back to Sol Price, Jim Sinegal, and the warehouse model of few items, a markup ceiling, and a membership fee that supplied about half of fiscal 2025 operating income. It includes Costco's 2009 standoff with Coca-Cola and makes the case for the model.
Who's who
- Sol Price+1 more episodeSan Diego lawyer who founded FedMart and then Price Club in 1976
- Robert PriceSol Price's son, co-founder of Price Club and his biographer
- Jim SinegalCo-founded Costco in 1983 and set its markup cap
- Jeff BrotmanSeattle retailer, Costco co-founder and longtime chairman
- Sam Walton+2 more episodesCopied Price Club as Sam's Club and said so
- Craig JelinekCostco CEO 2012-2023
- Ron VachrisCostco CEO since January 2024
Where it happens
- Morena Boulevard, San DiegoSite of the first Price Club in a former hangar
- Seattle, Washington+7 more episodesSite of Costco's first warehouse in 1983
- Kirkland, WashingtonHeadquarters location that gave Kirkland Signature its name
Timeline
- December 3, 1954FedMart opens in San Diego
- July 12, 1976Price Club opens on Morena Boulevard
- September 15, 1983Costco's first warehouse opens in Seattle
- 1995Kirkland Signature launched
- November 17, 2009Costco stops restocking Coca-Cola until Coke offers competitive pricing
- Fiscal 2025Membership fees of $5.32 billion supply about half of operating income
Still debated
The 14 to 15 percent markup cap is a reported management philosophy rather than an audited rule. Sources give widely differing sizes for Kirkland Signature sales, and manufacturer attributions rest on packaging, recalls, and occasional remarks.