First Quality is replacing Kimberly-Clark Corp. More on Costco: Not a Costco member? Shoppers have tips to skip new entry scanners. Consumer goods makers have been focused on restoring profit margins to pre-pandemic levels and scrutinizing their business models after years of higher costs. For Kimberly-Clark, which makes the Huggies brand of diapers, that means a shift away from low-margin private label contracts and a stronger focus on selling more higher-priced premium items under their own brand names.
Representatives for Costco and Kimberly-Clark declined to comment. The company has said in past years that private label items are a good value versus brand names, thanks to their price point. Costco says it expects to increase sales of Kirkland-branded items, which generally earn higher margins for the retailer versus national labels.
Kirkland diapers made by Kimberly-Clark have a curved fit that many shoppers perceive to be more ergonomic for their babies, said Natalia Richer, director of business development at consultant Diaper Testing International.
Kimberly-Clark also makes Kotex tampons and pads, along with Kleenex tissues and Scott toilet paper. Huggies recently introduced a new type of diaper and wipes, dubbed Skin Essentials, designed to protect against rashes. By Bloomberg wordpress medianewsgroup. More in Retail.
