Why in the name of Kirkland Signature does Costco sell $600k wedding rings?

Costco keeps luxury items in its inventory because it wants to be known as the destination for everything. And because it wants to keep customers on their toes.

March 9, 2020

Last week, Costco announced that one of its shoppers had shelled out $600k for a “high-value large-carat diamond.”

For those of us who buy bulk bags of almonds at Costco it may seem strange, but such pricey purchases aren’t uncommon at Costco — and it’s all part of their strategy.

It’s luxury-as-a-strategy

There are 2 main reasons that Costco makes sure to keep discounted luxury items in its inventory:

  1. Costco wants to position itself as the discount destination for everything, from bargain items to luxury goods — an effort to differentiate from budget-focused stores like Walmart.
  2. Costco wants to keep its customers on their toes with a constant rotation of interesting items — like diamond rings or swimming pools — that keep people coming back to see what’ll be featured next.

And there are plenty of other bizarre buys at the ’Co

Some other (figurative and not-so-figurative) gems include:

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