Costco is not about to let tariffs mess with your grocery bill. Instead of shrugging and passing higher costs onto members, the warehouse giant is doing what it does best: doubling down on its in-house hero, Kirkland Signature. Rather than raising prices and breaking the sacred bond between members and the deals they’ve devoted themselves to, Costco is leaning hard on its private-label powerhouse to offset rising costs. Here’s how Costco
How Kirkland Signature Is Helping Costco Dodge Tariffs
During Costco’s Q4 earnings call, executives made it clear: tariffs are annoying, but shoppers shouldn’t expect prices to spike anytime soon. CFO Gary Millerchip said the company is working with suppliers, boosting domestic sourcing, and “leaning into KS items” as a major way to cushion the blow.
CEO Ron Vachris described the effort as all-hands-on-deck, using every tool available to prevent price hikes — the same playbook Costco follows whenever commodity costs rise. In other words, tariffs aren’t intimidating Costco into skimping on value. And for Costco, the easiest solution is to expand Kirkland Signature offerings.
Kirkland Signature Is Already Running the Show
Kirkland Signature, Costco’s private label, is responsible for a third of the wholesale giant’s total revenue, and its growth has been one of Costco’s biggest bright spots this year. Vachris said Kirkland’s sales penetration “continued to increase,” offering members high-quality alternatives and helping balance out tariff pressure. The fan favorites continue their reign in 2025 with:
- 245 million hot dog combos sold
- 157 million rotisserie chickens
- Kirkland bath tissue sales tallied enough sheets to reach the moon and back over 200 times (that’s not an exaggeration)
If there’s a Mount Rushmore of Kirkland items, those three are the faces on it.
More Kirkland Products Are Coming — And They’re Rolling Out Fast
In Q4 alone, more than 30 new Kirkland Signature products hit shelves, including:
- Grass-fed beef sticks
- Organic extra-firm tofu
- New apparel pieces
- The combo calzone in the food court
And these are not one-off experiments. Costco is targeting categories that are hit hardest by tariffs. Expect to see more Kirkland Signature in these categories:
- Health and beauty
- Live goods
- Tires
- Mattresses
Even beyond merchandise, Costco’s ancillary businesses — Pharmacy, Optical, and hearing aids — posted strong quarters, boosted in part by private-label momentum.
Kirkland Signature Isn’t Just Expanding, It’s Moving
Another way Costco is beating tariffs is by reassessing where Kirkland products are made. The company has been shifting sourcing closer to where items are sold, reducing transportation costs and emissions.
Costco is already moving Kirkland laundry detergent production for Asian markets into Asia, saving the retailer 40% on that product alone.
More Costco Stories You Might Like
- 5 Discontinued Kirkland Signature Products That Costco Customers Hated — Not every Kirkland Signature product is a winner with shoppers. Here are some that were removed from shelves after receiving a less-than-warm welcome from customers.
- Costco’s Kirkland Products Are Actually Made By These Famous Companies — Always wondered whose behind some of Costco’s private label products? Wonder no more.
- 12 Kirkland Signature Foods Costco Shoppers Always Buy — Some Kirkland products are no-brainers, and shoppers throw them in the cart every time. See if these essentials are on your shopping list.
