The war of competitors has a clear winner

Sam’s Club, owned by Walmart, is relying on brands to compete with Costco.

Private labels, to be precise. Like the quality, quantity and type of items from the private label Member’s Mark to compete with Costco’s Kirkland Signature.

The war between branded products and private labels has been going on for decades.

Some would argue that household items like toilet paper, trash bags and paper towels are nearly identical, but what about specialty items and clothing?

Sam’s Club and Costco have about the same number of clubs in the US, but according to CNBC, Costco has about twice the annual sales.

“The club model survives because there are brilliant retailers who focus on creating or buying exceptional items,” Sam’s Club CEO Cris Nicholas told the media company. “Costco has done that so well with Kirkland over the years, and we’ve seen that be successful.”

A catalog detailing the benefits of a Costco membership lists some of Kirkland Signature’s most popular products, such as dishwashing liquid, laundry detergent and vitamins, and says the line was introduced in 1995.

“Our mission was simple: to produce an item of equal or better quality than the leading brand at a lower price, while controlling every aspect of the item’s production, including packaging and transportation,” the catalog states, encouraging every consumer to compare Kirkland Signature products with equivalent branded products.

Buyers who want Kirkland Signature or Member’s Mark items must first pay the cost of club membership for both.

Costco membership costs $60 per year for Gold Star and $120 per year for Executive membership.

Sam’s Club charges $50 per year for Club level membership and $110 for the Plus level.

According to CNBC, Member’s Mark sales account for about 30% of Sam’s Club’s annual revenue, while Kirkland Signature accounts for 28% of Costco’s revenue.

“Member’s Mark products are exclusive designs that use premium materials and the highest quality ingredients to ensure they offer the best quality and value at exclusive member prices,” says Sam’s Club on its corporate website.