Costco's Popularity Is Skyrocketing As Other Grocery Chains Take A Hit
Costco's popularity is growing by leaps and bounds. In the 2023 Axios Harris Poll 100, Costco secured the second-place spot in consumer rankings of companies. This is the sixth year that Costco has been on the list, and as of 2023, it's growing in renown.
The Axios Harris Poll asks Americans to submit two choices for companies with the best reputation and two with the worst reputation. 16,310 people took part in the survey this year. That list is then weighted by seven factors: trust, culture, ethics, citizenship, vision, growth, and products & services.
In the 2023 list, Costco showed great momentum, behind companies like Chick-fil-A, Amazon, and Trader Joe's (in terms of momentum, not overall rankings). Costco also ranked first in three specific categories: culture, trust, and growth. These findings reflect the evidently common belief that this business is a good company to work for given its corporate culture.
While Costco's reputation reached new heights, other brands fell off the Axios Harris Poll completely, as reported by Grocery Dive. H-E-B, Publix, and Wegmans disappeared from the conversation altogether. Some people might question how popular brands may have lost favor, but the list only has so many spots. This report therefore focuses primarily on the most visible brands.
Why is Costco's brand reputation soaring?
While Costco earned the number-two spot in the 2023 Axios Harris Poll 100, that designation tells a story that goes beyond just the past 365 days of shopping. Costco is a trusted brand for value, and it continues to grow. As recently discussed by Retail Wire, leadership might drive corporate profits, but the Kirkland brand has and will continue to be a priority for the company. The driving aim behind this private label is to be equal to or higher quality than national brands. Additionally, Costco tries to sell those products at a savings of 20% or more.
As shoppers continue to stick with private label food brands, it's more than just lower costs driving Costco's sales. Many consumers appreciate that the Kirkland brand has the quality they crave. From coffee to liquor and everything in between, the brand is perceived as being just as good or better than other options on the shelf. That strong reputation is why numerous consumers prefer Costco.
Although the recent rankings are positive for the company, maintaining that position is not going to be an easy task. Consumers can be fickle. However, as long as trust, growth, and consumer-loyalty remain strong, Costco should remain a top-ranked company.