2010 Edition

Private label programs are a very important part of each club’s merchandising strategy. Private label merchandise offers the clubs the ability to generate higher gross margins while still offering its members quality and value. The three major clubs have developed their own unique private label programs. Costco’s private label program offers one brand, Kirkland Signature. BJ’s private label program includes 12 brands with its two primary lines being Berkley & Jensen, a consumer label, and Executive Choice, a business member label. Sam’s private label program includes three brands, Member’s Mark, a consumer label, Bakers & Chefs, a foodservice label, and ProForce, a commercial product line.

This white paper is divided into eight sections: private label strategies, data overview, competing with a private label SKU, BJ’s program, Costco’s program, Sam’s program, private label at Cost-U-Less and PriceSmart and pricing analysis. The data in this white paper was gathered at BJ’s, Costco and Sam’s Club in January, 2010.