The Costco Shelf Signal That Indicates Product Exit or Decline

Every CPG leader and brand manager should know this: Costco’s shelf tags don’t just show price, they tell a story.

Description

Pricing at Costco looks simple until you realize how much information is hiding in plain sight. In categories like protein shakes, the shelf can show the same pack size, the same brand, and dramatically different prices, and that gap is rarely accidental.

This example shows how Costco signals assortment decisions directly on the price tag. Small details, like a price ending in .97 or an asterisk in the corner, tell a much bigger story about what’s being cleared out, what’s being discontinued, and what flavors are expected to stay in rotation. For shoppers, it’s a way to quickly understand value. For brands, it’s a window into performance.

From a Costco packaging design standpoint, this matters. When a product is fighting for survival in a tight assortment, packaging clarity, flavor communication, and shelf appeal all influence velocity. Costco packaging doesn’t rely on excessive decoration or luxury packaging design, but it does demand precision. If shoppers don’t immediately understand what they’re buying, they won’t buy it again.

The shelf always tells the truth. You just have to know where to look.

Video Transcript

00:00:00 That's a little indicator or symbology
00:00:02 that you should be looking for when
00:00:03 you're trying to figure out what is
00:00:04 going on.
00:00:08 Hey guys, it's Shopping with Christy.
00:00:09 I'm at Costco today and I want to give
00:00:11 you a little trick that I learned about
00:00:15 Costco pricing and sort of how to look
00:00:18 at the competition or categories and see
00:00:21 what's really going on here. And so
00:00:23 today we're going to be looking at
00:00:24 protein shakes. Check it out. I'm
00:00:26 actually shopping this set right now and
00:00:29 I'm trying to decide which flavor I want
00:00:31 to buy. My inclination would be to get
00:00:35 chocolate. Who doesn't like chocolate?
00:00:38 >> I love chocolate.
00:00:41 >> And I'm looking at, let's see, there's
00:00:42 so much on this, but it's 18 count for
00:00:45 $31.99. And then I'm looking at some
00:00:47 other flavors. Here's caramel. And I'm
00:00:49 like, wait, $23 versus 32? But they're
00:00:53 both 18 count. What's going on here?
00:00:55 Cafe Latte is also 32 that flavor. But
00:00:58 you go over here and it's a cookie dough
00:01:01 is also 23. It's like $8 less for the
00:01:05 same amount of product. What's going on?
00:01:07 And I'll tell you two things I noticed
00:01:09 that's telling that's going to let you
00:01:11 know. And so you really got to look at
00:01:13 this tag. So there's two things I'll
00:01:15 point out here. This is significantly
00:01:16 less expensive. It's 12 cents per ounce.
00:01:20 The normal price is 16 cents per ounce.
00:01:22 That's quite a deal. But there's two
00:01:24 things you need to know. The first of
00:01:25 all is that 97 cents. Anytime at Costco
00:01:29 there's a product that ends in a 97 or
00:01:32 you know a seven. What that's telling
00:01:34 you is it's on clearance. That's an
00:01:36 incredibly hot price versus let's say
00:01:39 it's ending in a nine. 9 is the normal
00:01:41 number you see 49 99. This ends in a
00:01:44 seven. That's telling you right there
00:01:46 that's at clearance price. The other
00:01:47 thing I'll point out to you is do you
00:01:50 see that asterisk on the top right
00:01:51 corner? That asterisk means that this
00:01:54 item is dis being discontinued. This
00:01:56 item is not. It's not being
00:01:58 discontinued. This one is and it's
00:01:59 clearance price and that's why it's so
00:02:02 much cheaper. But they're keeping cafe
00:02:04 latte flavor that's still $31.99 not
00:02:06 being discontinued. You know, sometimes
00:02:08 you'll see something being discontinued
00:02:10 but not on clearance. Sometimes you'll
00:02:12 see, you know, but usually if
00:02:14 something's on clearance, it is being
00:02:15 discodeed. And you know it, that
00:02:17 asterisk right there. So, for all you
00:02:19 Costco shoppers or Costco CPG people
00:02:23 like me, that's a little indicator or
00:02:25 symbology that you should be looking for
00:02:27 when you're trying to figure out what is
00:02:28 going on. So, clearly Costco's keeping
00:02:30 chocolate and cafe latte and vanilla
00:02:33 over there, but they're discontinuing
00:02:35 the caramel and the cookie dough.
00:02:36 Probably those items didn't move as well
00:02:38 and so they're discoing them. All right,
00:02:40 bye.

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Mary Marnell Director of Content & Marketing

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A seasoned veteran in the CPG (Consumer Packaged Goods) industry, Jason Vaught brings a wealth of knowledge and hands-on experience as the director of content and marketing for SmashBrand. His comprehensive role at the forefront of brand communication ensures that CPG brands remain well-informed about the suite of services SmashBrand offers. Furthermore, his insights derived from the company's strategy, design, and testing services are invaluable to brand owners and managers seeking expert guidance.

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