Costco Connection - October 2009

Kirkland Signature cookware has maintained its high specifications, despite a large spike in the price of raw materials in the last few years.

“With Kirkland

Signature, the

focus is always on quality.”

—Jeff Lyons Costco senior vice president

In creating a perfect product, sometimes it’s not what you put in, but what you don’t. Case in point: Kirkland Signature grilled chicken strips, with no preservatives.

Enter a clever bottle known as the Kirkland Signature bottle. As Costco developed the latest generation of liquid detergents, the manufacturer designed a bottle that fit better on shipping pallets. With the new design, 120 bottles can fit on a pallet, compared to 90 bottles of a leading national brand.

More bottles per pallet means fewer truckloads during transportation—which helps to reduce costs and is better for the environment. (Incidentally, the bottle also fits better in cupboards).

“We designed the best bottle in the industry today,” says Deb Belcourt, the Costco buyer who oversees the program. “It’s one part of the formula to offer this product at a savings well over 20 percent versus the leading national brand.”

But most important is what’s inside the bottle, says Deb. “It’s all about quality,” she says. “With Kirkland Signature, it’s always been all about the quality.”—TT

Counting on quality

There’s a great story that exemplifies the “ hidden quality” of many of the products in the Kirkland Signature line.

Costco CEO Jim Sinegal had seen sheets advertised—which at first blush were of the same quality as Kirkland Signature—that were selling for less than the Kirkland Signature brand. Concerned, he asked the Costco buyer how this could be. The buyer simply took the competitor’s sheets and the

Kirkland Signature sheets, washed them both and left the sheets on Jim’s desk the next day. When he saw the difference, the matter was closed.

“A lot of people see the thread count [TC] and don’t look any further,” says Carolle Speer, the rep for Divatex, Costco’s sheet manufacturer. “They don’t notice that the manufacturer used an inferior type of cotton or dye, or that it’s not a ‘true’ 600 thread count, or that the sheets are actually smaller. There are so many factors that, when combined correctly, make an exceptional sheet.”

Costco has continuously upgraded the Kirkland Signature sheets since they were introduced in 2004.

“We switched to Supima cotton because this guarantees our Costco sheets are made with 100 percent, extra-long-staple, U.S.-only Pima cotton. The result is a softer, more refined yarn and fabric,” says Costco buyer Michelle Husby.

Sheets are sewn with 11 to 12 stitches per inch; the industry standard is six to eight. Hems are dou-ble-folded, then stitched, leaving no raw edges. And high-quality elastic is sewn all the way around the fitted sheet rather than just in corners. The sheets are Sanforized (preshrunk), mercerized for added strength and color evenness, finished with a wrin-kle-reducing agent and singed to eliminate pilling.

Many companies allow a 2 to 5 percent tolerance on the finished thread count. This means a 600 TC sheet can finish at 570 to 588 TC. “It’s accepted in the industry for a lot of retailers to test lower than 600, yet still claim that thread count,” says Kathy Thull, assistant general merchandise manager for Costco. “They allow this. We don’t.”

Quality assurance is implemented at every stage, from cotton certification to weaving, finishing and shipping. Additional analysis is performed by Bureau Veritas, a third-party independent testing lab. “The production time to move Kirkland Signature through the factory is much different, because the quality control is so much stricter,” says Carolle. “In terms of how strict Costco is, it’s unusual. But we’ve gotten used to the Costco way.”

And Costco’s price for 600 TC sheets has come down $5 on its queen, king and California king sheets since they were introduced last year.—TFJ

Now you’re cooking

“Cookware technology is always changing,” observes Sam Haugen, Costco’s assistant cookware buyer. Erin Medved, Costco’s housewares buyer, adds, “Especially with regard to the evolution of nonstick surfaces.”

Kirkland Signature cookware first came to Costco in 1994. At the time, the buyer, Kathy Thull, saw it as a natural development for Costco’s Kirkland Signature brand.