Kirkland and other private labels are doing well because amid shortages and a steep increase in demand, stores are running out of stock on certain products. This means empty shelves when customers are looking for name brands. With no other option, many shoppers are experimenting with store-brand products for the first time.
Another factor in Kirkland’s newfound popularity has to do with cost. Private-label products are often cheaper than regular consumer brands. This makes a difference in an economy where 20.5 million jobs were lost in April — resulting in an unemployment rate of 14.7 percent — the worst since the Great Depression (via ABC News). With so many out of work and low on funds, the lower price of the Kirkland line and other store-brand products like it has been attracting shoppers who have never used them before.
According to a survey conducted in March by research firm AlixPartners, out of more than 1,000 consumers, around a quarter have tried private-label brands for the first time. The survey also revealed that at least 30 percent of these newcomers to private-label products plan on sticking with them. So the popularity of Kirkland products may last — even after the pandemic ends.
