Reason 2: Why manufacturers sell to Costco

A second reason why manufacturers strive to get into the Costco warehouses is the fact that it is a membership based retail avenue with high loyalty and a high-end demographic. Costco’s retention is around 86-87% from year-to-year, which means that Costco shoppers see enough of a value to keep them coming back year after year. Even through economic downturns and membership price increases, Costco members continue to renew their memberships. There is certainly a value to having your products displayed to a segment of loyal Costco members, with higher annual incomes than the average shopper.

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