Costco CEO Talks About Kirkland Signature Brand
Costco’s new CEO Ron Vachris recently sat down with The Wall Street Journal for a wide-ranging conversation that offered a rare look inside the workings of the warehouse giant’s $86 billion private label, Kirkland Signature. From employee culture to supplier negotiations, Vachris explained how Kirkland has become a cornerstone of Costco’s identity — and a competitive force that even national brands respect.
From Cart Pusher to CEO
Ron Vachris’ story is Costco legend: he started at the company 42 years ago as a forklift driver and worked his way up through the ranks. Now, as CEO, he brings a deep understanding of Costco’s operations and culture, which he says is key to both employee retention and brand trust.
“Our people stay,” Vachris said. “They know we’re in this for the long haul.” Costco boasts one of the lowest turnover rates in retail, thanks to above-industry wages, full benefits, and opportunities for advancement — a culture that’s been part of the company since its founding.
The Culture of the ‘Costco Guys’
Vachris spoke fondly of the “Costco guys” — a term that’s evolved into shorthand for the tight-knit teams that run the company’s global operations. “It’s a culture built on trust and consistency,” he explained. These teams often spend years, even decades, perfecting relationships with suppliers and identifying opportunities for Kirkland Signature to thrive.
Kirkland’s Quiet Dominance
Kirkland Signature, launched in 1995, is now a retail phenomenon. Despite being a private label, it has built a loyal customer base that rivals — and in some cases, surpasses — national brands. Vachris attributes this to the brand’s unwavering commitment to quality and value.
“Kirkland isn’t about being the cheapest,” he said. “It’s about delivering better or equal quality at a better price.”
That strategy has helped Costco leapfrog competitors like Walmart and Target in private label performance. While other store brands often compete on price alone, Kirkland wins on consumer trust. From olive oil to golf balls, many Kirkland products are quietly made by the same manufacturers that produce high-end or name-brand goods.
How a Kirkland Product Comes to Life
Creating a Kirkland Signature product is no small feat. It can take years of development, testing, and negotiations. The process often begins when a Costco buyer identifies an item with potential for improvement — whether on price, quality, or both.
The team then approaches trusted suppliers, often those already making national brand equivalents, and challenges them to meet Costco’s rigorous standards at scale. In many cases, suppliers are willing to collaborate because Costco can move massive volume — and pay promptly.
Vachris revealed that the Kirkland label gives Costco unique leverage in the market. “We’ll tell a brand, ‘If you don’t want to play, we’ll go Kirkland.’ And they know we’re serious.”
Not Everything’s a Hit
Despite its success, not every Kirkland product has thrived. Vachris was candid about the occasional miss. “We had a Kirkland Greek yogurt that didn’t hit the mark,” he said. “Same with certain apparel lines. When it doesn’t work, we cut it fast.”
That agility is part of the formula. Costco doesn’t chase fads — it watches, tests, and commits only when it sees long-term value.
What’s Next for Kirkland
Looking ahead, Vachris sees Kirkland Signature expanding further into wellness, sustainability, and even tech-adjacent categories. As consumer habits evolve, so will Kirkland — but without compromising the brand’s core promise of value and trust.
“We’re not chasing shiny objects,” Vachris said. “We’re asking: what does the member need next?”
With Ron Vachris at the helm and Kirkland Signature continuing to redefine what private label can be, Costco isn’t just selling bulk — it’s selling a philosophy. One that’s deeply rooted in consistency, quality, and the long game.
