Costco relies on SKU adaptability and the purchasing experience as part of its tariff strategy.

Costco is adjusting its product offerings to manage the impact of tariffs, focusing on increasing its private label Kirkland Signature products and sourcing more items domestically across various categories. CFO Gary Millerchip highlighted the company's agility in SKU management, allowing it to adapt to market changes. By consolidating suppliers and optimizing purchasing strategies, Costco has achieved significant cost savings. Despite a different product mix for the upcoming holidays, Millerchip expressed confidence in the company’s inventory stability and supply chain management.