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.

Christy Lebor Partner & Head of Brand Development, SmashBrand

15 Articles

Christy Lebor is a Partner and Head of Brand Development at SmashBrand, a premier brand development agency championing the FMCG space. With two decades of Fortune 500 CPG experience, Christy harnesses her background from industry titans to infuse brands with a growth trajectory that transitions them from category disruptors to legacy brands.

Her portfolio includes:

Brand management roles at global giants: Kraft, PepsiCo, and Unilever.
Launching pivotal products: Axe Body Wash in the US and the original Dove Campaign for Real Beauty at Unilever.
Steering innovative product lines at PepsiCo: Gatorade chews, protein bars, Mio Fit, and Amino Energy.
Pioneering breakfast innovations at KraftHeinz: Just Crack an Egg
Leading the branded business segment and global innovation at JBS, the world's largest meat company in the world.

Prior to her tenure at SmashBrand, Christy's track record spans various senior management and development roles. Each role has honed her expertise in the intricacies of FMCG, enabling her to cultivate category advantages for brands. From SKU rationalization to directing pivotal innovation stage gates, Christy's acute expertise in FMCG has consistently placed her at the forefront of the industry. Her ability to make incisive, strategically sound decisions has been key in propelling brands to market leadership.

Her philosophy pivots on the principle that timely, relevant data, integrated with brand strategy, is the linchpin for brands aspiring to scale and establish market dominance. At SmashBrand, Christy intricately weaves this philosophy, ensuring brands are not just strategically poised but holistically developed.

Educationally, Christy is equipped with a BBA from The University of Michigan Business School, an MBA from the Kellogg School of Management, and additional prowess in Private Equity and Venture Capital from Harvard Business School.

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