“A key to SKU sustainability in the Club channel comes back to the design principles for that SKU. A well-designed SKU starts with a keen understanding of the Club member/shopper and how they may be distinct and different from shoppers in other channels. It then also considers the specific role for the member’s/shopper’s trip in the channel, which typically is “stock up.”  These will inform how to best determine the specific assortment, pricing strategy, in-Club and online placement, and merchandising to best engage and convert the Club shopper.”

“One of the most important parts of driving an item’s success at Costco is designing packaging artwork for your item and the various components of the pallet. Ensure that a claim representing the benefit and value of your product for the member is prominent on the item itself and tray, and if there are competitive items in the club, be sure that your claim is appropriately positioned vs. the competition. Use the sides and back of the pallet as a billboard for your brand, incorporating your brand’s most recognizable visual assets so members can identify it easily. Consider low-cost digital testing of the appeal of your item including images of the product, claims and tray designs in the context of competition. Results from this type of test can also be used as part of the sale of an item to the customer.”

“The key really is the sales data – the item’s sales per week/per club. For items brought in for a “Special Buy” the key is that sales data and ideally for the item to “sell out.” These items bring excitement to the category, and the treasure hunt equity to the club environment. To turn them into an everyday/active replenishable SKUs requires strong sales that indicates member demand, but also have year round appeal – not just seasonal appeal.”