Here’s How Much The Average Costco Member Spends Per Trip (2024)
Meghan Overdeep
·1 min read
Hint: it’s more than Target!
Everybody jokes about how easy it is to spend money at Target, but according to recent research, it’s Costco that does the most damage to our bank accounts.
According to data prepared for Insider, the average Costco shopper spends just over $100 per visit and makes 30 trips per year, for a total of approximately $3,000 annually.By contrast, the average Target shopper spends $50 per visit, and the average Walmart shopper spends $54 per visit.
But Costco’s own numbers suggest that shoppers actually spend much more. A representative for the wholesale retailer told Nexstar that the actual average transaction amount—per shopper and per visit—is closer to “roughly $150 per order.”
The things we do for free samples!
In a March 2023 earnings call, Costco CFO Richard Galanti said that the average Executive Costco member—who pays for a $120 membership—“spends more and shops more” compared to shoppers with basic Business or Gold Star memberships, which cost $60.
In an earlier call, Galanti noted that Costco averages 5 years and 7 months between membership price increases, and that the company is due for a hike. He did make it clear that that timetable was flexible, but hinted that an increase was on the horizon.
It’s important to note that the typical Costco shopper has a considerably higher household income than those who rely on Target and Walmart: $128,000 versus $80,000.
The average Costco shopper spends about $150 per trip. Costco reported that the average spend-per-visit increased the last two quarters. To save money at Costco, stick to a shopping list and earn money back through an executive membership and a rewards credit card.
Broken down, the average Costco member is implied to spend an average of $250 monthly on Costco products. That checks out. It's two weekly trips with a $100 budget, plus an extra $25 for random last-minute stuff that you only knew you wanted when you saw it.
The daily revenue for one Costco store is around $530,000. Costco's total net income was $5.007 billion in 2021. Costco has 804 global stores, with over 500 of those being located in the US. Costco's net worth in January of 2022 is $214.1 billion.
Share of U.S. wholesale clubs consumers 2022, by household income. Between June 2021 and May 2022, over 50% of Sam's Club's consumers had a household income of less than 50,000 U.S. dollars. On the other hand,14.8% of Costco consumers had a household income of over 150,000 U.S. dollars.
Per Business Insider, recent data from market-research firm Numerator found that the average Costco shopper spends just over $100 per visit for a total of around $3,000 per year. In comparison, the average Target shopper spends $50 per visit, and the average Walmart shopper spends $54 per visit.
Terms may apply to offers listed on this page. The average Costco shopper spends about $150 per trip. Costco reported that the average spend-per-visit increased the last two quarters. To save money at Costco, stick to a shopping list and earn money back through an executive membership and a rewards credit card.
If you buy your home or auto insurance through Costco, the Executive membership will get you some exclusive benefits such as roadside and lockout assistance. If you're on the cusp of a $3,000 annual spend but also use those services, it might make the membership worthwhile.
The entry-level cost of joining Costco is $60.00 per year. If paying the 5% surcharge on your purchases is less than $60, it would not make sense for you to join Costco just to avoid it. You'd be better off doing your online shopping as a non-member and paying the slightly higher prices.
But compared to its peers, the wholesale club is more popular with higher-income millennial and Gen X households. In particular, Asian-American shoppers are even bigger fans of the brand, and are nearly twice as likely as the average US consumer to shop at Costco, according to Numerator's data.
Unfortunately, though, Costco doesn't offer senior discounts. You'll need to prepare to pay $60 for a basic membership or $120 for an Executive membership. You may find, however, that the savings you enjoy can more than make up for those costs.
You'd need to spend an average of $250 a month -- or $3,000 a year -- at Costco for you to break even on your Executive upgrade. If you can't meet that bottom limit, you're losing money. Unless you're going to increase your spending, you should downgrade your membership.
Costco membership is $60 a year. An Executive Membership is an additional $60 upgrade fee a year. Each includes a free Household Card. Please include sales tax in all applicable states.
View our full list of Costco Services. Executive Members also receive a monthly edition of The Costco Connection magazine. Costco membership is $60 a year. An Executive Membership is an additional $60 upgrade fee a year.
So how much money can you save by buying bulk groceries from Costco? By my calculations, you'd save over $1,000 in a single year by shopping from a wholesale retailer. Below is a breakdown of how I reached that figure. (And if you get a Costco Executive membership, you could save even more.)
“If you look at Costco, you have to realize they're using these membership fees to pay for the rest of their goods.” More fees, more profits: As Taylor pointed out, membership fees generated $4.5 billion in revenue in 2023, which is 72% of its total income of $6.3 billion.
A representative for the wholesale retailer told Nexstar that the actual average transaction amount—per shopper and per visit—is closer to “roughly $150 per order.”
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