Skip to main content’s strategic move takes aim at Costco


Walmart’s e-commerce arm is shaking up its private label offerings. will increasingly phase out its assortment of Kirkland Signature branded merchandise — Costco’s private label brand. The move is said to help augment efforts among Walmart’s Sam’s Club chain, which is focused on boosting sales among its own store brand, Member’s Mark, according to Bloomberg.

While the decision for to stop carrying merchandise from a Walmart competitor seems logical, it could be a setback for both and Costco. has carried Kirkland products since its inception in 2015. The loss of these sales will impact the club retailer’s exposure to a large base of online shoppers, according to the report.

Meanwhile, accounted for 5.5% of Kirkland’s online sales in the first half of 2016. It was the third biggest seller of Costco’s private label products behind Amazon and Costco, itself, according to Bloomberg.

This is not the first controversial move has made since being acquired by Walmart last fall. In May, the company pulled the plug on its Jet Anywhere program. The loyalty program rewarded consumers for shopping at more than 600 retail partners, including Foot Locker, Land’s End, Saks Fifth Avenue, Lord & Taylor and Bloomingdales, among others, though its online retail portal.

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