How Walmart-owned Sam's Club is trying to take on Costco's private label Kirkland

Stuck at home during the Covid pandemic, a woman purchased an inflatable pool from a membership club. The pool started leaking air after a few uses, motivating the club’s chief merchant to revamp their private brand. The club aims to catch up with its chief rival, which has similar US clubs but higher annual revenue. The club’s CEO mentioned that the success of the revamped private label would determine the club’s future as it expands. Experts believe that surpassing the rival’s beloved private label may take a long time but can be possible by following the same successful formula. The popularity of private labels has increased as retailers introduced unique flavors and exclusive items. Sales of private label products have grown significantly. Clubs offering exclusive products are essential as they require shoppers to pay a membership fee. The club implemented a makeover for its private label, consolidated multiple brands into one, and began soliciting customer feedback for product development. The club aims to turn its private label into a respected lifestyle brand by extending its offerings to home categories. The moves to revamp the private label seem to be paying off as the club has reported a record number of members and increased customer transactions. The club’s finance chief credited the private label for driving growth. Product quality will determine the success of the private label. Since 2020, the club has launched and improved over 1,200 items, including an upgraded inflatable pool that has gained popularity.