EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

EB skus: 400+
Profile: A good year for Costco with net revenue gains across the board: the US up by 8.9% to $
64.9 billion, Canada up by 15.7% to $14 billion, and other international store up by 59.3% to $ 9.9
billion. Membership shot upward by 10.4% to 64 million cardholders. Net income rose by 12% to
$ 1.5 billion. Costco spent $ 1.3 billion on new warehouses and depots. Some 20 (net) new
warehouse stores were added during this fiscal period. Its higher gasoline prices plus favorable
foreign currency exchange rates boosted sales. Now in its 19th year, Costco’s Kirkland Signature
private brand range continues to grow. New product added included: Greek yogurt, organic beef
patties, and peanut butter-filled pretzels. Also a small batch of 7-year-old bourbon was created,
offering club members a 60% discount over comparable national brands. The small savings came
with its new Kirkland Signature premium digital hearing aid with Bluetooth capabilities. The
company reports that Kirkland Signature accounts for 15% of its total items stocked, but 20% of
net sales; while that latter share could build to 30% in the next several years. Costco reported its
ancillary business (gasoline stations, pharmacy, food court, optical/photo/hearing aid/travel
departments) altogether represented 18% of sales versus 14% a year ago (up by 24%). Almost $ 9
billion worth of gasoline was sold in fiscal 2011--up by 40% over the previous year. Costco has
recently established direct relationships with a number of high-end suppliers, including Precor,
Cannon Gun Safes, Stanley Tools, Craftsman, Asics, Hartmann, Hurley and Spanx. Also, a cobranded
Kirkland Signature-Cinnabon brand was established on cinnamon rolls sold in its
bakeries; while Foster Frams co-branded with the KS brand on turkey breast, Ito En on a ready-todrink
green tea, and Campbell Soup on an assortment of canned soups.
Procurement Contacts: Ed Murphy, Export Sales Manager (Tel:/Fax: 206-313-6596); Mike Day,
Director Export Sales, PriceCostco Japan Trade Office (Tel: 81 045-671-0471 or Fax: 81-045-
471-9217); Nancy Griese, VP, GMM Corp. Food/Sundries; Stephanie Wendell, Buyer Corp.
Foods/Sundries; Cynthia Glaser, Vice-President, General Merchandise; Deb Belcourt, Corp.
Sundries Buyer; Russ Decaire, Merchandise Manager
CRAI SARL
Centro Direzionale, Milano 2, Palazzo Canova, ia F.lli Cervi, 20090 Segratel, Milano, ITALY
Tel: +39 2- 210891
Fax: +39 2- 21080401
www.crai-supermercati.it
Total 2007 Systemwide Sales: $11.2 Billion (E); Total Crai Distribution Sales: $4.4 Billion (€ 3.2
Billion) +5%
Percentage of Sales in Exclusive Brands: 8%