https://www.cnbc.com/2025/10/10/how-costco-built-clothing-business.html
- Costco has grown into a major clothing retailer, logging approximately $9.7 billion in apparel sales in 2024—a 40% rise in the past five years, outpacing competitors Sam’s Club (28% growth) and BJ’s (21% growth).
- In its most recent fiscal quarter, Costco reported double-digit increases in men’s apparel sales.
- Although apparel is a relatively small part of Costco’s total sales, it now generates more revenue than apparel brands like Abercrombie & Fitch and Old Navy.
- Costco’s success comes from a mix of strategies:
- Direct deals and licensing partnerships with popular brands like Columbia and Gap.
- Strong private-label sales under the Kirkland Signature brand.
- “Opportunistic” buys from manufacturers and other retailers, creating a “treasure hunt” atmosphere for shoppers.
- Costco sometimes has well-known brands create its private-label goods, but this is often intentionally unclear.
- In 2025, Lululemon sued Costco, alleging that Costco “duped” athletic wear and created confusion about product origins—a sign that top apparel retailers now see Costco as a formidable competitor.
- Costco did not comment for the article but experts say its “treasure hunt” approach and lower prices help draw customers, even amid legal disputes and rivalry with established apparel brands.