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RegExp("[?&]notifications=1(&|#|$)");"desktop"===h&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(no)),notifLabel:document.querySelector(".".concat(oo))};t.notifDropdown&&mo(e,t)}))}()}};]]>Lawrence Nga, The Motley FoolTue, March 17, 2026 at 10:45 AM GMT+1 5 min readWhen investors think of Costco Wholesale (NASDAQ: COST), they usually focus on its membership model. After all, annual membership fees generate billions of dollars in recurring income and help anchor the company's profitability.But another piece of Costco's strategy deserves just as much attention. Over the years, the company has quietly built one of the most powerful private-label brands in retail: Kirkland Signature.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »What started as a simple store brand has evolved into a strategic asset that strengthens Costco's pricing power, deepens customer loyalty, and reinforces the company's competitive moat.Image source: Getty Images.Private-label brands are common in retail. Most supermarkets and big-box chains offer their own alternatives to national brands. But Kirkland operates on a completely different scale.In fiscal year 2025, ended Aug. 31, 2025, Kirkland generated $90 billion in annual sales across categories ranging from groceries and household goods to clothing and electronics. With group-wide merchandise sales of $270 billion, the brand accounts for roughly a quarter to a third of Costco's total sales.That makes Kirkland larger than many well-known global consumer brands.Yet, unlike most private labels, Kirkland doesn't position itself as a budget substitute. Instead, Costco aims for something more ambitious: products that match or exceed the quality of leading brands while still offering better value.That positioning has helped Kirkland become a trusted name among Costco's members.Costco's reputation for value rests on a simple promise: Offer high-quality products at consistently low prices. Kirkland plays a crucial role in delivering that promise.Many Kirkland products are manufactured in partnership with well-known suppliers. In some cases, the same producers behind premium national brands help make Kirkland products, though the branding remains exclusive to Costco.This approach allows Costco to maintain quality while keeping prices competitive. Over time, shoppers begin to trust the Kirkland label itself rather than relying solely on national brands. That trust creates a powerful behavioral shift. 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