You’ve probably seen the posts: “Costco is finally in Lebanon.”
Well, not exactly.
What has actually happened is that Spinneys has started selling a selection of products sourced from Costco this past week.
There is no Costco warehouse in Lebanon, and Costco itself has not announced a Lebanese store. Costco’s latest corporate update from September 24 lists its 939 warehouses across 14 countries and regions, and Lebanon is not among them. In fact, none in the entire Middle East.
So, What Is Spinneys Selling?
Costco is a membership warehouse retailer built around bulk purchasing, limited product selection, high sales volumes, and low margins. Costco says those efficiencies, including volume purchasing and reduced handling and operating costs, allow it to sell products at substantially lower prices.
The whole point of Costco is the benefit from cheaper per unit prices since you’re ordering bigger quantities.
Then there’s Kirkland Signature, Costco’s own private-label brand.
Kirkland makes everything from household products and detergent to food, clothing, and personal-care products, and is sold as part of Costco’s membership warehouse model.
Spinneys is now bringing some of those products to Lebanon.
Its current website’s New Arrivals section lists 12 products in its Costco category, nine of them Kirkland items. Most are household and hygiene products, including wipes, laundry detergent, fabric softener, gloves, facial towels, freezer bags, and absorbent pads.
That’s useful for anyone who wants access to these products locally. But it’s a very different proposition from actually having Costco in Lebanon.
And There Is A Pretty Big Price Difference
This is where the Costco comparison gets interesting. We checked several of the exact products currently listed by Spinneys against Costco’s current U.S. listings:
| Product | Spinneys Lebanon | Costco | Spinneys markup |
|---|---|---|---|
| Kirkland Ultra Clean Laundry Detergent Pacs, 152-count | $49.99 | $22.69 | 220% |
| Kirkland Baby Wipes, 900-count | $47.99 | $22.69 | 210% |
| Kirkland Ultra Soft Fabric Softener, 150 fl oz | $24.99 | $11.34 | 220% |
| Kirkland Daily Dry Facial Towels, 200-count | $49.99 | $21.55 | 230% |
| Kirkland Nitrile Exam Gloves, 400-count | $44.99 | $21.99 | 200% |
| Kirkland Freezer Quart Plus Bags, 264-count | $32.49 | $16.45 | 200% |
The difference is exorbitant.
The same 152-count Kirkland Ultra Clean Laundry Detergent Pacs is listed at $49.99 at Spinneys, compared with $22.69 on Costco’s site. That’s about 2.2 times more. As pictured below.
And the facial towels are listed at $49.99 at Spinneys versus $21.55 through Costco, more than twice the price.
That’s important because low pricing is fundamental to what Costco actually is.
So buying a Kirkland product in Lebanon can give you the brand and the product, but it does not give you Costco’s underlying pricing model.
Are The Products Actually Exclusive To Spinneys?
This is another part of the current hype that deserves some context. Spinneys has been promoting the new Costco selection as exclusive to its stores.
But Kirkland products were already being sold by other retailers in Lebanon. Amerkene, for example, currently lists Kirkland paper towels, baby wipes, bath tissue, trash bags, plastic wrap, and other products. SuperDokan also lists Kirkland Signature clothing, including men’s shirts and pants, on its Lebanese website.
So, as a broad statement that Costco or Kirkland products are only available through Spinneys, that doesn’t match what is currently publicly listed by other Lebanese retailers.
Which is doubled down in Gray Mackenzie Retail Lebanon (GMRL), Spinneys’ parent company, Linkedin post 7 months ago that it would be sourcing and reselling select Costco products:
“Spinneys is an independent retailer and is not affiliated with or endorsed by Costco Wholesale. All products referenced are purchased by Spinneys for resale.”
Further disclaiming that Costco is coming to Lebanon or that Spinneys has exclusivity.
And Then There Was The Dbayeh Rumor
Adding to the confusion, NewinBeirut also published a post claiming that the old Spinneys Dbayeh location would become a Costco operated by GMRL, before removing the post.
There is currently no Costco announcement confirming a Lebanese warehouse or a Costco location in Dbayeh. Costco’s own most recent corporate figures continue to list its operating markets, and Lebanon is not one of them.
More importantly Costco owns and operates all its locations around the world directly, without franchising or partnerships – and any temporary ones were just that, temporary until it took back full control as it did in Taiwan and Mexico.
We even wrote about how Costco registered their trademark in Lebanon. Which could be to protect its trade name or may be part of a potential future Middle East expansion.
The takeaway is pretty simple:
Lebanon has Costco products. Lebanon does not have Costco. And while having Kirkland products available locally may be convenient, it’s worth knowing that you’re buying Costco-sourced products through a separate retailer, at that retailer’s markup, rather than getting the Costco model itself.
Costco was not immediately available for comment.
