Costco leans on SKU flexibility, buyer experience for tariff strategy

The retailer has also opted to shift production origins and consolidate buying to lower the cost of goods.

  • Costco is changing its product assortment “where appropriate” to mitigate the impact of tariffs, executive vice president and CFO Gary Millerchip told analysts during a Q4 earnings call.
  • For instance, the retailer is leaning into its private label Kirkland Signature products and ramping up domestically sourced items, such as health and beauty, live goods, tires and mattresses.
  • “We believe our expertise in buying and the flexibility afforded by our limited SKU can give us greater agility to navigate the current environment and minimize the impact of tariffs,” Millerchip said.

Costco leans on SKU flexibility, buyer experience for tariff strategy | Retail Dive

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