Costco’s markup on clothes can vary based on the product category and the brand. However, as a general rule, Costco’s markup on clothing ranges from 12% to 14%. This is significantly lower than the industry average markup of 50% to 60%.
Costco’s low markup is possible because of its business model, which focuses on selling a high volume of products at a lower margin. This approach allows Costco to offer quality products at a lower price and attract more customers who value affordability.
Additionally, Costco’s clothing products are typically sourced directly from the manufacturers, which helps to reduce the cost and increase efficiency. Overall, Costco’s lower markup on clothes is one of the reasons why it is known for offering value and savings to its customers.
