written by
Mike Todaro

How Costco Uses $5 Chickens, AAPN Members and Free Samples to Turn Customers into Fanatics

Editorial 1 min read

We shop at Costco. In recent years, we know of 5 AAPN Member companies who have received orders for some 600,000 garments from Costco. The one I saw recently is being produced by AAPN Member Luis Antonio Aspillaga of World Textile Sourcing, based in Lima, Peru.

I've been to Luis' amazing office in Peru, full of designers, technology, rolls of fabric and the noise of creativity. On my visit, Luis had me try on the Costco Kirkland $12.99 t-shirt I describe below and then an $80 European brand - same shirt, exact same hand and drape, SLIGHT difference in price - $67.

His current in-store garment is:
Kirkland Signature™ Men's Slub Cotton Tee, $12.99
Colors: Blue, Gray, Green
Interlock slub
Short sleeves
Constructed with soft and luxurious 100% Peruvian cotton for comfort
Side slits at hem with tonal bar tacks for style and comfort
Sizing: 9 sizes; S-3XL; Tall Sizing: LT-XXLT

Note that online Costco offers 6 regular sizes, 3 tall sizes and 3 colors of this shirt. In any other retail store, that would generate 27 SKU's. Not at Costco. Here its 1 item, as the following article details (3,700 and 3,800 items for sale per (Costco) warehouse (while), a Walmart supercenter sells 142,000 different items). 

It is 1 item because Costco is not going to replenish the stock. Stack 'em high and let 'em buy. THIS is a great article fully describing the one retailer in the US least afraid of Amazon.

How Costco uses $5 rotisserie chickens and free samples to turn customers into fanatics
CNBC, May 23 2019

Around the world, there are 94 million people who have a Costco membership card. Celebrities have them: Chrissy Metz of NBC’s “This Is Us” is an executive member “because we buy a lot of toilet paper,” she says.

There are Instagram accounts devoted to Costco, such as @costcodeals, and websites, such as CostcoInsider.com.

Costco has even become a travel destination — one fan says she has been to 70 Costco stores during her travels. And at least one couple got married at Costco.

This level of enthusiasm for a grocery store may seem odd to some — unless you’re a Costco shopper. Read More

retail trends