Sandy Miller

Costco's Challenge for CPG Vendors

June 10, 2010

FROM RETAILWIRE:
While the market potential for Costco is large, its SKU-constrained environment, margin requirements, private label acumen, and regional buying prowess place numerous challenges on CPG companies versus other channels, according to a recent report from L.E.K. Consulting. What do you see as the unique challenges for CPG companies in selling to Costco and other warehouse clubs?      [more...]

CPGs should sell to any resellers who can promptly pay their bills. One thing that would serve Costco and CPGs is a very active, in depth, product brand program. Retailers provide their suppliers/manufacturers with the place to sell their products and the shoppers to buy it. A lot!

This analysis should include a focus on selling at the shelves and perimeter. When this is well done (too infrequently), sales soar which benefits all parties.