"Costco is developing its store brand Kirkland Signature, centered on providing quality products (as opposed to a focus on cheap pricing). The company is leveraging its distribution network and customer loyalty to make Kirkland a recognised brand, and has found opportunities to replace branded products with Kirkland, which costs less to produce. Costco: Kirkland Signature Landing Page. It seems that the approach is working, and management has noted that Kirkland is more profitable (p. 8) than comparable brand products."