While everyone was paying attention to Kirkland Signature food at Costco, the store quietly became a major player in the clothing world. They are now making more money from clothes than Old Navy. And if you think that’s impressive, you may want to read on. Here’s the story.
The pandemic changed how we shop, even for essential businesses like Costco. There are things you won’t find in Costco anymore, and if you plan to go back during the pandemic, follow some safety tips. But there’s also a positive change you should know about in your Costco shopping routine.
Their rotisserie chicken is great, but so are the clothes from Costco
You might not know about a hidden gem in their stores that doesn’t get much attention compared to their famous rotisserie chicken: their clothing section. Yes, clothes! It might seem odd to buy clothes at a place known for groceries and toilet paper, but many people do it for good reasons. (Note: In some states, Costcos are limited to selling essential items like clothes during the pandemic.)
As Costco’s success in the United States continues, it’s slowly becoming a notable clothing retailer. If you haven’t explored Costco.com’s clothing section, here’s what you need to know. Costco has its own Kirkland Signature clothing line and offers items from big brands like Tommy Hilfiger, Calvin Klein, and Birkenstock at affordable prices. Remember that some of these name-brand items are exclusive to Costco members, even online.
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Their pricing is additionally incredibly good
Costco keeps its profit margins at around 15 percent, allowing for significant discounts on brand-name clothing. Well-known brands bring their unsold merchandise to Costco, selling them at much lower prices. It’s a hidden shopping perk that only members know.
Cost and discounts aren’t the only reasons people turn to Costco for clothes. The in-store experience also plays a role. With its folded clothes on tables, Costco’s clothing section resembles bargain shops like T.J. Maxx and Marshall’s. It offers a similar “treasure-hunt” feel but in a smaller, less overwhelming space.
Despite the scaled-down experience, there’s a sense of urgency in Costco’s clothing section. Instead of multiple racks of the same item, you’ll find tables displaying whatever is available that day. If you see something you like, the “I’ll get it next time” option disappears, creating a buy-it-now mentality.
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Profitability comes into play and it all makes sense
People who are already at Costco, either in-store or on the website, for other essential purchases often explore the clothing section. This has led to serious profits for Costco, with clothing and footwear now accounting for $7 billion in annual sales. Costco is now the eighth most profitable clothing retailer in the United States, surpassing big names like Neiman Marcus and Old Navy in annual profits from clothing.
With such impressive numbers, it seems that Costco clothes shoppers are onto something. So, the next time you’re shopping, consider checking out Costco’s clothing section. And remember, clothes are just one of the many interesting things you can find at Costco.
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