Costco Keeps Discontinuing Popular Products. Frustrating for Shoppers, Great for Business.

Costco shoppers know the feeling: You find a product, it becomes part of the routine, and then one day it’s gone. The retailer’s habit of pulling popular items has generated plenty of member frustration over the years. But the constant rotation isn’t a flaw in Costco’s strategy—it’s a key reason the business works so well.

Costco’s worldwide membership renewal rate is nearly 90%, which tells you a lot about the loyalty the warehouse club inspires. Part of the appeal is the hunt. A typical Costco warehouse carries about 4,000 stock-keeping units, or SKUs. Most supermarkets carry roughly 30,000. That narrow assortment is intentional: fewer items means Costco can buy in bigger volume, push suppliers harder on price, and move merchandise fast enough to keep warehouses efficient.

“By carefully choosing products based on quality, price, brand, and features, the company can offer the best value to members,” Costco has said. That standard applies to new products and old ones alike. If a longtime item no longer meets the pricing or quality bar, Costco is willing to cut it—even when customers love it.

In a warehouse club, every square foot of shelf space matters. Discontinued products make room for something new that might sell better, carry better margins, or simply deserve a spot in Costco’s limited assortment. The result is what the company calls a “treasure hunt”: Members keep checking the aisles because the product mix is never quite the same.

That helps explain why demand alone doesn’t always save a 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.

If Costco can’t source ingredients at the right price, can’t hold to quality standards, or doesn’t see enough value for members, it has little reason to keep a product on the shelf, no matter how popular it has been.

Kirkland Signature Semi-Sweet Chocolate Chips were a prime example. The 4.5-pound bags disappeared in 2024 after cocoa prices spiked, frustrating bakers who relied on them. The chips have recently returned to some warehouses after an absence of roughly two years, but there is no guarantee they’re back for good.

Kirkland Signature soy milk also had a dedicated following, but Costco discontinued it in 2025 because of slow sales. The food court has had its own controversies: The combo pizza was removed during the pandemic, and the classic churro was replaced by a Double Chocolate Chunk Cookie. Both changes drew complaints from members.

For Costco, the math is clear. It doesn’t need to preserve every beloved item forever. It needs to keep warehouses productive, keep prices competitive, and give members reasons to return. Churning the assortment serves all three goals.

The trade-off is a shopping experience that can feel unpredictable and, at times, frustrating. But as Costco sees it, the willingness to let go of yesterday’s favorite is exactly what keeps tomorrow’s treasure hunt interesting. That’s little comfort if your go-to item disappears, but it’s a big reason Costco keeps thriving.

Maurie Backman owns shares of Costco.

This story was originally published by TheStreet on Aug. 18, 2026, where it first appeared in the Retail section.