Costco has a way of making shoppers fall in love with products they can’t find elsewhere. That’s a big reason the company boasts a worldwide membership renewal rate of almost 90%.
The downside, though, is that Costco has a habit of killing products that have been on the shelves for a long time. And that can make for a frustrating experience for members.
But there’s a reason why Costco is constantly rotating products in and out of its lineup.
And sometimes, Costco’s willingness to kill a popular product is actually part of what makes its business model work.
Costco doesn’t want a supermarket-sized selection
Costco typically carries about 4,000 SKUs (stock keeping units) in its warehouse club stores, compared to the 30,000 found at most supermarkets. But there’s a reason for that.
As Costco says itself, “By carefully choosing products based on quality, price, brand, and features, the company can offer the best value to members.”
Being choosy with inventory allows Costco to buy enormous quantities of the products it does carry, negotiate aggressively with suppliers, and move merchandise quickly.
It also creates Costco’s famous “treasure hunt” shopping experience. New products arrive, older ones disappear, and members have a reason to keep checking the aisles.
Costco has also made clear that price matters more than preserving a particular product.
“We evaluate the potential for new high-quality Kirkland Signature items with a goal of providing at least 20% value versus what we would sell the national brand item as,” CFO Gary Millerchip said during the company’s third-quarter 2024 earnings call.
That explains why a product can be popular and still disappear.
If Costco can’t source the ingredients cheaply enough, can’t maintain its quality standards, or no longer believes the product delivers enough value, it has little reason to keep selling it.
Costco has killed some big favorites
Costco’s famous Kirkland Signature Semi-Sweet Chocolate Chips are a prime example of a beloved product the company pulled from its shelves. The 4.5-pound bags disappeared in 2024 after cocoa prices surged.
The good news for disappointed bakers is that Kirkland Signature Semi-Sweet Chocolate Chips have recently begun appearing again at some warehouses after roughly a two-year absence. But the reality is that they could disappear again.
Then there’s Kirkland Signature soy milk, which Costco discontinued in 2025 because of slow sales, despite the fact that some members considered it a household staple.
Costco has also eliminated plenty of beloved food-court items.
The combo pizza disappeared during the pandemic and became one of the company’s most complained-about menu changes.
The classic churro met a similar fate when Costco removed it and replaced it with a Double Chocolate Chunk Cookie.
The real lesson for Costco shoppers
There’s a reasonable argument that Costco’s product-killing strategy is good business.
Costco doesn’t need to preserve every popular item forever. Rather, it needs to keep warehouses productive, prices competitive, and members interested in returning.
That can mean saying goodbye to products shoppers love.
For members, the lesson is simple: If you find something at Costco that you absolutely love, don’t assume it will be there next year — or even next month.
That may be frustrating. But for Costco, the willingness to kill yesterday’s favorite can be precisely what keeps tomorrow’s treasure hunt interesting.
Maurie Backman owns shares of Costco.