What are Costco’s biggest focus areas that clients should plan for?
Costco’s primary focus for 2025 is shopper value with everyday best and sharpest retail prices, as it looks to expand its membership base while enhancing the overall shopping experience. Costco #1 item is membership renewal, which is why value is so important: If a member can go on Amazon or walk into Target and get the same item for the same price, why should they renew their membership? This is especially important as it increases membership fees for the first time since 2017, from $60 to $65 and $120 to $130 for executive members. The retailer notes that these changes will “help to offset costs so we can keep prices low. A modest increase in fees will allow Costco to bring  members even greater value.”
With an ever-growing number of members, Costco is investing heavily in creating a seamless, enjoyable shopping experience both in-store and online. This includes improving digital platforms, streamlining in-store operations, and offering exclusive member benefits. Highlighting your products' exclusive value propositions and leveraging Costco’s marketing channels can help you tap into this expanding membership base. In fact, for new items, effective use of Costco.com can help you get your foot in the door with Costco.  Warehouses have limited SKU's, but an item proving itself on Costco.com opens the door for Warehouse.
Of note for marketers: Costco will consider rotations of 12 weeks but there must be an exit strategy for the remaining inventory. Distribution on Costco.com as if you’re running a 60-club test.
Based on current trends and retailer strategies, if marketers do nothing else in 2025, what should they deliver on to be successful? 
In 2025, the most critical success factor at Costco is delivering exceptional value and efficiency. Costco’s business model revolves around providing high-quality products at competitive prices, and this focus is unlikely to shift. Brands must align their offerings with Costco’s value proposition by ensuring high product quality while maintaining cost-effectiveness.
Key actions for your 2025 plan:

• Ensure the Best Value: Clearly communicate the strong and compelling value proposition your products provide to Costco members

• Ensure the Best Cost - Pricing Strategies: Align your pricing strategies with Costco’s expectations. Competitive pricing without compromising on quality is essential.

• Hurdle Rates that Meet Expectations: Each category has its own hurdle rate, but Costco continues to expect more from its items.  Keep in mind: Weekly sales hurdle rates and Mailer hurdle rates continue to increase.

• Strong Brand Support Programs: Support all items using a combination of online, social, and Costco vehicle support.

• Offer Costco Exclusives: Increase the attractiveness of your offering with larger sizes, unique formulas, and items/packs not available on Amazon and in Sam’s Club.

• Highlight Sustainability: Sustainability is always a focus, so packaging improvements that reduce waste will be looked on favorably.

• Don’t Overlook Operational Efficiency: Optimize your supply chain and production processes to meet Costco’s high standards for efficiency and cost-effectiveness. This includes being responsive to inventory needs and minimizing disruptions.

• Ensure There’s an Exit Strategy: One of the biggest mistakes manufacturers make is not having an exit strategy if the product doesn’t perform as expected. Not having a well-thought-out strategy in advance can mean high, unexpected costs later.

Proper trade investment is important to drive results; what insights can you provide to help suppliers plan for next year?
Effective trade investment is pivotal for driving results and ensuring an item is successful at Costco. The rate of investment depends on the type of item, the segment the item competes in, and if it’s warehouse vs. online, among other factors.
Properly allocating your trade funds ensures that you can leverage Costco’s promotional opportunities and effectively compete with other brands. Invest in impactful programs and activities that resonate with Costco’s membership base and align with its promotional calendar.
What are the retailer programs that have typically proven successful and should be considered next year?
While these can vary by category, there are a number of programs that have consistently proven effective at Costco. Note all offers have to be approved:  For Everyday items, consider mailers, connection ads, and display programs. For Rotation items, mailers or fence/endcaps with TPD, connection ads,  and eCommerce support via category hero ads and email blasts are the way to go. Online items do best with Member Give Back events, Buy More and Save events, .com Mailers, category/sub-category hero ads, and email blasts. Another thing to consider: Exclusive bundles. Offering exclusive bundles or limited-time offers can help differentiate your brand and appeal to Costco-s value-driven members.