Merchandising When people think of warehouse clubs, they think of huge package sizes, cheap products, and low-income clientele. What you see when you go to Costco is different. You can sell junk to someone at a rock-bottom price or you can sell exclusivity at a needless markup. The value proposition, not just the price proposition, is what Costco considers in its merchandising. According to BT Alex.
Clubs are item merchants, hence each selection is important.
In other words, when you walk into a Costco, you're not faced with random piles of stuff you don't need or cheap knockoffs of stuff you do need. For those shoppers who are not looking for an adventure in cheap, unknown substitute brands, they can feel comfortable walking into a Costco. When it comes to the company's private mark, Kirkland Signature, the company is very serious about the brand equity it is building. Depending on the product, the savings at Costco can be substantial or it can be minimal. If you're buying Gillette Mach 3 cartridges, for example, you're going to get somewhere around Wal-Mart's and Sam's Club prices.