Costco Sends Signal About Consumer Spending

Costco says US comparable sales eked out only a 0.9% gain in March after excluding the impact of changes in gasoline prices. Brendan Case has more on "Bloomberg Markets: The Close."

Connect with us on...

[debk]

I’ve been a Costco executive member for 17 years and have actually been considering giving up my membership because items my family used to buy frequently are no longer available or have increased in price so much that it’s no longer worth driving 60 miles to the nearest Costco warehouse. The monthly sale flyers from Costco have mostly been focused on high end electronics, televisions and vitamin supplements. How many such products does a household need? Ordinary staples no longer go on sale unless they’re junk food or luxury meats, neither of which we buy. So, yeah, when the executive membership price increases again we’ll probably give up on Costco permanently.

[bradmiller]

I've been a Costco business member since forever and I shop there twice monthly; my observation/perception is that the average customer there has enough money to get what they need (and want) and they're prudent enough to shop value, not price. The other end of the equation is that we trust Costco for value, quality and service. Costco runs a tight ship.

[PinkTigger]

My membership was so worth it last year. I used it to buy things like smaller household appliances, household goods, electronics, books, toys, and clothing. The savings on my winter coat alone paid for the cost of the membership. That coat was selling elsewhere at retail for $170 and I got it for $39. While I do like their maple syrup, the Kirkland toilet paper, and the Chick Fil-A copycat Bare chicken nuggets, I don't buy really buy food there. I received a membership for Christmas this year, but still haven't activated it, because I just can't afford to shop there now with housing and living costs increasing substantially.

[Me-mnnw]

Although I'm an older, empty nester. I still find Costco to be an excellent value. You can't beat their prices when it comes to paper products, cleaning supplies, shampoo, soaps, over the counter medications, meats, spices, clothing, etc. I literally get money back after renewing my executive membership.

[amineaiffa]

I see 3 reasons to buy at Costco that make it worth it:
1) Cheaper Gasoline
2) Excellent quality meats for a lower cost
3) Incredible return policy on basically any item in case it disappoints your expectations

That being said, if you go to Costco to buy 2 items you'll end up walking out of there having bought 5 or 10 items and easily burning through $100 to $200 bucks.

[michaelcinaz]

I’ve been a Costco member for 30 years. This year is the first year I did not renew my membership because I cannot afford to shop there anymore.

[TheJanet]

I've never thought of Costco as being a good value. Have shopped there with people who have memberships. Just seems like buying mass quantities of products with little to no discount compared to what I find at other stores - that's why I've never purchased a membership.

[michaelc]

Raising the membership is definitely not helping

[crismcdonough]

The problem with Costco; therefore, the problem with this "signal" is that Costco is only in more populated areas. The closest one to me is an hour away. While they may have good deals I'm not driving that far plus paying a membership. The distance and time negates any savings.

[chuck]

Upper and Middle Class seems to snapping their wallets shut at Costco except for Food, so this would be a great time to RAISE fees? I think that would be a big mistake because prices on a lot of items are already deflating because there is little demand. That extends to Discount Stores like Walmart and Target too. I'm sensing signs everywhere that an Economic Downturn is underway.

[unbreakable]

Drive by any Walmart. The one where I live used to have a fairly full parking lot, now only 1/4 to 1/3 full every time I drive by. I know I go shopping far less often than I did two years ago. Not buying anything but necessities and won't start doing so until prices come down, not just stop rising. Our governments have wrecked the world and governments are not the ones who will solve the problem they created.

[darrenoconnell]

I used to love Costco, but once Aldi arrived I can pretty much beat all Costco food prices at Aldi. There was a substantial savings in cleaning and beauty products at Costco, but during the pandemic I learned to coupon and now get all my toiletries and cleaning products practically free. So no, I will not renewing my Costco membership.

[olivierauberger]

I arrived in the US in 2013. I became a citizen in 2021. I was all about Costco in my first years but after a while, I realized this wasn't for me. I prefer Walmart. I don't have to show my card, I get access to great prices and I won't overspend. I used to shop and throw away so many things from Costco. My freezer is too small anyway.

[sg]

I have to shop for three households - mine and my elderly dad's and my elderly aunt's. Costco just makes it easier to get everything in fewer trips, but I rarely get out of there spending less than $250. I've found I can get better quality cat and dog food at my local feed store for a lower price. The deli and bakery food is WAY too expensive. I mostly just buy food and consumables there. There's no money left for discretionary purchases.

[zippydo]

Costco only works for large families. Singles can hardly buy anything there, it’s all in huge quantities.

[toddfuhrman]

So they are growing at pre pandemic levels, after surging growth over the past two year. Not sure this is significant news

[merlie]

I used to spend 10K a year at Costco but slowed down before, during and after the pandemic. Now I don’t stock too much anymore but only for TPs, Paper Towels and vitamins plus I use their CC for gas.

[vivianfoster]

Been a Costco member for 30 years, but lately, many things are just not a great value anymore. Yes, there's some really cheap items but unless you have a large family you don't need 12 croissants or 12 giant muffins. I've bought countless produce that were just awful. It was such a waste of money - when you buy in 'bulk' and don't eat all of it in time, plus it's a hit or miss with produce. I switched to Aldi months ago, where I can get much smaller sized items and spend less. This year, bought corn beef at Costco $5.99/lb and Aldi $2.99/lb. The Aldi one was better!

[meep]

I was with Costco several years and switched to Sam’s Club. I like it better, the customer service is also better. Just my opinion.

[ai.zn]

Next step to retain customers: "Welcome to Costco. I love you. Welcome to Costco. I love you."