Costco collabs with Saks Fifth Avenue

Going to Costco is never the same experience twice. Of course, you’ll always find the same staples like detergent and dog food, eggs and meat, but I’ve yet to walk out of a Costco without at least one item that wasn’t on my list.

I have never set out with a plan to buy sheets, towels, or a Vitamix at Costco, yet somehow all of these items have found their way into my cart.

The treasure hunt element of a Costco visit is one of the things that makes it so much fun. I know I’m not alone in feeling that way.

So you’ve been warned: if the price is right, that patio pergola you didn’t know you needed just might find its way into the back of your SUV.

While Costco always has most of the groceries and household goods shoppers expect, the company also strives to keep things interesting with seasonal products like that pergola or camping essentials.

Costco doesn’t just throw caution to the wind when it adds special products, however. The company’s stated priority makes it clear: “Our mission and our business is to continually provide members with quality goods and services at the lowest possible price,” said Costco CEO Ron Vachris at a talk he gave at Seattle University in March.

Costco’s return policy is legendary, so you can bet the company isn’t going to gamble by selling garbage that customers end up returning for refunds.

Costco clothing is not all private label

Cost is key, but quality comes in a close second at Costco, even in the clothing department.

In every Costco, there is a huge section of clothing that sometimes includes legacy brand names like Frye or Levi’s. And there is also always plenty of Kirkland-branded clothing.

But sometimes Costco management decides it’s better to let the brands speak for themselves.

That’s the case with the new Saks Fifth Avenue collaboration.

Costco will soon carry a line of men’s apparel made by Centric Brands in collaboration with Saks Fifth Avenue; a women’s line is also expected, according to a report in WWD,

Centric Brands has a deep roster of well-known upscale brands, including Joe’s Jeans, Buffalo, and Izod.

Last year Saks formed a joint venture with Authentic Brands Group, which licenses dozens of well-known brands, ranging from Barneys New York, Judith Leiber Couture, Hervé Léger, and Vince.

The Saks/Costco collab is thought to be part of this new venture.

The Costco Saks collaboration has some critics

The presence of the Saks Fifth Avenue name at Costco is causing concern among some of Saks’ current vendors. Several brands that sell through Saks say the partnership could damage the upscale image the department store has long cultivated.

“You can’t take a prestigious name like Saks and put it into Costco,” said one vendor who regularly does business with Saks, according to the WWD report.

He believes this move could further erode the retailer’s high-end reputation. “They’re trying to monetize the trademark,” he added, expressing frustration that the Saks brand might lose its exclusive appeal.

The vendor also questioned whether shoppers would still associate Saks with luxury if they begin seeing its name on display at a value-focused warehouse club.

“Where is luxury going?” he asked, highlighting the growing tension between prestige branding and mass-market exposure.

Meanwhile, Saks has been expanding its e-commerce footprint through a new partnership with Amazon. Earlier this year, it launched Saks on Amazon, a dedicated storefront on Amazon’s Luxury Stores platform.

The online boutique debuted with a curated selection of designer labels, including Dolce & Gabbana, Balmain, Etro, Stella McCartney, Giambattista Valli, Erdem, Fear of God, Jason Wu Collection, Rosetta Getty, and Johanna Ortiz. High-end beauty brands such as Chantecaille and La Prairie also joined the online boutique.

Saks is likely just looking for a way to survive. Like every other retailer on the planet, Saks has been closing stores, and earlier this year Saks Global shut down a fulfillment center in Tennessee resulting in 450 people losing their jobs.