Have you ever walked into a Costco, expecting to grab some bulk groceries, only to leave with a cart full of stylish jackets, cozy sweaters, or even designer-inspired activewear? It’s almost like a retail magic trick—one minute you’re eyeing a 10-pound bag of rice, and the next, you’re trying to justify why you *need* that cashmere scarf. Costco has quietly mastered this art, turning what was once a sideline into a nearly $10 billion clothing empire. How did a warehouse club known for discount tires and giant ketchup bottles become a fashion powerhouse? Let’s unpack the strategies that have made Costco a surprising giant in the apparel world.
The Rise of Costco’s Clothing Juggernaut
It’s no secret that Costco is a retail titan, but its apparel business is a lesser-known success story. In 2024, the company raked in an estimated $9.7 billion in clothing sales, according to industry analysts. That’s not just pocket change—it’s more than what some dedicated apparel retailers, like Abercrombie & Fitch or Old Navy, bring in annually. Over the past five years, Costco’s clothing segment has grown by nearly 40%, outpacing competitors like Sam’s Club and BJ’s, which saw growth of 21% and 28%, respectively. So, what’s the secret sauce behind this unexpected retail victory?
A Strategic Blend of Brands and Bargains
Costco’s clothing success starts with its knack for offering brand-name appeal at prices that make shoppers do a double-take. Walk through their aisles, and you’ll spot familiar names like Columbia, Gap, or even high-end labels on occasion. These aren’t knockoffs—they’re the real deal, often secured through direct manufacturer deals or clever licensing partnerships. By working closely with brands, Costco ensures quality while keeping costs low, a win-win for shoppers looking for value without sacrificing style.
Costco’s ability to offer premium brands at a fraction of the cost is a game-changer in retail.
– Retail industry expert
But it’s not just about name brands. Costco’s Kirkland Signature private label plays a starring role, offering everything from tailored blazers to athletic wear that rivals pricier competitors. The beauty of Kirkland is its ambiguity—shoppers often can’t tell if it’s a brand-name item in disguise or a unique design, which adds to the allure. In my experience, there’s something oddly satisfying about snagging a Kirkland sweater that looks like it could’ve come from a boutique, but at half the price.
The Treasure Hunt Experience
Ever wonder why shopping at Costco feels like a scavenger hunt? That’s no accident. The retailer’s opportunistic buying strategy is a key driver of its apparel success. Unlike traditional stores with predictable stock, Costco often snaps up limited-run items, overstock from other retailers, or one-off deals from manufacturers. This creates a sense of urgency—shoppers know that if they don’t grab that perfect jacket today, it might be gone tomorrow.
This approach transforms shopping into an adventure. As one retail analyst put it, “Costco’s unpredictability is its superpower.” You might stumble across a designer coat or a pair of jeans that feels like a steal, but only in select stores for a short time. It’s a strategy that keeps customers coming back, eager to discover what’s new.
- Limited availability: Special items create urgency to buy.
- Unique finds: One-off products make every trip exciting.
- Low risk: Costco’s generous return policy encourages impulse buys.
Outpacing the Competition
Costco’s apparel growth doesn’t just look good on paper—it’s leaving competitors in the dust. While Sam’s Club and BJ’s have seen solid gains, Costco’s 40% growth over five years is unmatched among warehouse clubs. Even more impressive? Its clothing sales rival those of major apparel retailers. For context, Abercrombie & Fitch pulled in $4.9 billion in 2024, while Old Navy hit $8.4 billion—both dwarfed by Costco’s $9.7 billion.
| Retailer | 2024 Apparel Sales | 5-Year Growth |
| Costco | $9.7 billion | 40% |
| Sam’s Club | Est. $6.5 billion | 21% |
| BJ’s | Est. $4.8 billion | 28% |
| Abercrombie & Fitch | $4.9 billion | N/A |
| Old Navy | $8.4 billion | N/A |
What sets Costco apart is its ability to make apparel a destination, even for shoppers who didn’t come for clothes. While Target and Walmart offer broader selections, Costco’s curated approach feels exclusive, almost like a secret club for savvy shoppers.
Navigating Controversy with Confidence
Not everything has been smooth sailing. In mid-2025, a major athletic wear brand raised eyebrows by accusing Costco of mimicking its designs. The lawsuit claimed that Costco’s Kirkland activewear was too similar to the brand’s iconic styles, leading to consumer confusion. While the legal battle is ongoing, it’s inadvertently shone a spotlight on Costco’s apparel line. As one retail analyst noted, “This controversy is like free advertising—suddenly, everyone’s talking about Costco’s clothing.”
The buzz around Costco’s clothing, even from a lawsuit, has only boosted its visibility.
– Retail industry analyst
Rather than shying away, Costco has leaned into its reputation for affordable, high-quality alternatives. The controversy highlights a key truth: Costco’s clothing isn’t just competing with warehouse clubs—it’s challenging the big players in retail fashion.
Why Shoppers Keep Coming Back
At its core, Costco’s apparel success is about more than just low prices. It’s about creating an experience that feels personal, exciting, and rewarding. Shoppers love the thrill of discovery, the satisfaction of a great deal, and the trust that comes with Costco’s stellar reputation. In a world where retail can feel predictable, Costco’s clothing aisles are anything but.
Perhaps the most interesting aspect is how Costco has turned a small segment of its business into a retail juggernaut without losing its core identity. It’s still the place where you can buy a gallon of mayo and a flat-screen TV, but now it’s also where you might find your new favorite jacket. That balance of practicality and surprise is what keeps Costco’s clothing empire thriving.
What’s Next for Costco’s Apparel Empire?
Looking ahead, Costco shows no signs of slowing down. With men’s apparel sales posting double-digit growth in the latest quarter, the retailer is doubling down on its winning formula. Could we see more exclusive brand partnerships? Maybe a push into sustainable fashion? One thing’s for sure: Costco’s clothing empire is here to stay, and it’s rewriting the rules of retail in the process.
So, next time you’re navigating those sprawling Costco aisles, take a detour through the clothing section. You might just find a hidden gem that makes you rethink what a warehouse club can do. After all, who knew bulk shopping could be so stylish?
