15 Reasons People Love Going to Costco More Than Regular Grocery Stores (2024)

From Aldi and Trader Joe’s to Sam’s Club and Whole Foods, people have a ton of options when it comes time to head to the grocery to stock up on sundries and supplies.

One store that has particularly loyal customers, however, is Costco. Perfect for saving money on groceries, the bulk outlet even requires folks to pay an annual fee in order to step foot through the door.

So what is it that not only attracts shoppers to Costco in the first place but makes members out of them?

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Free samples

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Let’s start with the obvious. On some days, usually busy shopping days, Costco literally gives out free food.

You can do a loop of the grocery area and enjoy samples of sausage, artichoke dip, cheese and crackers, appetizers, candies, various beverages, etc.

Costco also doesn’t police you so you can go back for seconds or even thirds and make a meal of it.

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The food court

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While the samples are great because they’re free, the food court at Costco has some pretty affordable options.

There’s the famous $1.50 all-beef hot dog combo, pizza by the slice or pie, sandwiches, salads, desserts, and more.

The food is actually good, too, so you’re not stuck with slimy pizza or salads with wilted lettuce.

Bulk deals

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While regular grocery stores sell plenty of items, they don’t have the bulk selection that Costco does.

From 30-packs of toilet paper to giant jars of peanut butter to enough supplements to last you months, everything's bigger at Costco.

That can mean fewer trips to the grocery store and is a godsend for large families. They even have volume sales with a $10,000 minimum.

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Friendly and helpful staff

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Sometimes you may have to wait in long lines at Costco, but by the time you get to the front, the staff is always pleasant.

They’re often adept at making engaging small talk and making sure you found everything you needed. That doesn’t slow them down either, as the staff is as efficient as they are agreeable.

Happy employees

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If you ever wondered why Costco workers are so nice, a big part of it is that the company treats its workers well.

For one, the pay is good for all of their positions. Plus, the health benefits are generous and comprehensive, including dental and vision care.

Then there’s the 401K plan, which is better than the average. Staff can even get free Thanksgiving turkeys!

Generous return policy

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Costco is famous for its generous return policy, which essentially states that if you’re not happy with your purchase, you get your money back.

There are some exceptions, like electronics, alcohol and tobacco, diamonds, and custom orders. But other than that, they’ll pretty much take back anything. It’s resulted in some bizarre Costco returns at times!

Costco Secrets: 7 genius hacks Costco shoppers should know


Competitive prices

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Because Costco sells in bulk, its prices are competitive compared to regular grocery stores.

You might spend more upfront on peanut butter since you’re buying two large jars instead of one small jar, but you’ll pay less per unit and come out on top — as long as you use it all up.

Costco also offers discounts you can’t find elsewhere, like steeply-discounted gift cards.

Huge selection

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Not only are Costco warehouses giant, but so is their selection of merchandise.

If you’re shopping for salmon, for example, there are fresh, frozen, skin-on, Sockeye, Coho, King, farmed, wild, smoked, tartar, burgers, and canned options available.

Add to that the fact that Costco sells everything – from groceries and paper products to furniture and clothing, jewelry, and so much more – and you can understand the appeal.

Consistent quality

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Depending on the grocery store you’re shopping at, you may find that some days the produce selection is great, and others, it’s kind of pathetic.

Fortunately, at Costco, the merchandise situation is going to be the same every time (barring toilet paper shortages or holiday demand).

The retailer has pretty meticulous quality control protocols in place, so products will be reliable and worth your money.

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Membership literally pays off

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There are two kinds of memberships for individuals at Costco: Gold Star and Executive. The former will set you back $60 and the latter $120.

However, the Executive level also gives you 2% cash back on all of your purchases every year. Costco literally sends you a check. So not only can you save at Costco, but if you shop there enough, you can get much more than just the cost of your membership — up to $1,000.

That’s something you won’t get at a regular grocery store.

It caters well to different needs

mandritoiu/Adobe 15 Reasons People Love Going to Costco More Than Regular Grocery Stores (11)

Are you a pescetarian? As we mentioned earlier, Costco has a diverse selection of fish.

Don’t eat meat at all? There are lots of vegetarian options at the food court and in the store. Need gluten-free products? They carry both groceries and freshly baked options, and lots of them.

The aisles are also large enough for folks in wheelchairs, and motorized carts are provided for anyone who needs them.

Surprise items

T.Den_Team/Adobe 15 Reasons People Love Going to Costco More Than Regular Grocery Stores (12)

While members enjoy shopping at Costco for practical and financial reasons, there are also some fun aspects people look forward to.

This includes finding new items, as Costco does take on new suppliers from time to time.

You may remember the first time you saw their giant teddy bear, for example, or you found a new kind of sandal in the apparel section.

Costco Insider's Guide: 12 little clever ways to get more out of your Costco membership

New electronics

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If you’re not in a rush to buy groceries and grab prescriptions, it can be fun to poke around Costco’s electronics section. There’s an undeniable appeal in being able to both look and touch.

They always carry an impressive stock of the latest in TV technology, for example. You can also see what new smartphones are available and decide if you want to spring for a new one.

Nostalgia

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Shopping at Costco can be nostalgic for baby boomers since the store has been in operation since 1983.

Folks from that generation have also passed the tradition of a Costco outing down to their kids, so going shopping and having lunch at the food court feels like a rite of passage.

The $1.50 hot dog combo feeds into that nostalgia as well, as the price hasn’t changed in decades.

Cheap gas

Andriy Blokhin/Adobe 15 Reasons People Love Going to Costco More Than Regular Grocery Stores (15)

Speaking of the hot dog combo — a famous loss leader for Costco — gasoline is a loss leader for the company.

That means Costco loses money on these specific products, but the draw they provide means members spend enough money on other items to more than make up for it.

So you can lower your car costs and fill your tank after your shopping trip for less than most other places.

Bottom line

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Shopping at Costco is preferable to traditional grocery stores for many people.This is because of its low prices, unique and large selection of products, free samples, and cheap food, all which will help you keep more money in your bank account.

That doesn’t mean everyone would rather be shopping at Costco, as stores like Publix and Wegmans also have extremely devoted customers.

But if you’re a large family that goes through a lot of groceries every week, Costco is hard to beat.

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15 Reasons People Love Going to Costco More Than Regular Grocery Stores (2024)

FAQs

Why do people love Costco? ›

When compared to other similar retailers, Costco's competitive advantage lies in its own private label, its discount prices, and its membership dues. This has provided customers with a product that they can rely on at low prices.

What makes Costco special? ›

Costco is a warehouse club retailer operating big warehouses that sell a variety of food and non-food products for a very low price. The low price is guaranteed by a membership model whereby customer can access the warehouses only if she has paid an annual membership fee to become a Costco customer.

Why Costco is the best store ever? ›

Bottom line

Shopping at Costco is preferable to traditional grocery stores for many people. This is because of its low prices, unique and large selection of products, free samples, and cheap food, all which will help you keep more money in your bank account.

Why is going to Costco fun? ›

Costco gives you not just "cheap" groceries, but delicious food, my all-time-favorite paper towels, lots of organic options, and a fun range of items to discover, like flavorful hummus or a big box of fresh-baked cookies.

What attracts customers to Costco? ›

Customers love low prices. More discounts by Costco enable more purchases in volume. Thus, the Costco membership fee is quickly recovered, leading to a more than 90% renewal rate.

What are the benefits of going to Costco? ›

3 Perks For Costco Members
  • Quality Items. Costco.com is chock-full of quality items and has savings on products from leading brands. ...
  • Risk-free shopping. A Costco membership pairs the best values with a reliable, 100% satisfaction guarantee. ...
  • Upgrade for even more.

What makes Costco different from other stores? ›

Low prices, high quality

Costco's strategy of stocking high-quality items, which are sold in bulk-size at low-profit margins entices their target customers to become Costco members and to buy more products during their shopping trip.

What is Costco best known for? ›

Costco is known for carrying top-quality national and regional brands, with a 100% satisfaction guarantee. Members also can shop for private label Kirkland Signature™ products, designed to be of equal or better quality than national brands, including juice, cookies, coffee, housewares, luggage, clothing and detergent.

What makes Costco appealing? ›

Quality vs. Price. Costco's secret to success is in its mission statement: “To continually provide our members with quality goods and services at the lowest possible prices.” In short, high-quality goods at affordable prices.

What is the Costco's motto? ›

Mission Statement of Costco

Costco's mission statement thrives "to continually provide our members with quality goods and services at the lowest possible prices."

What is Costco biggest seller? ›

Toilet paper

Costco's best-selling item is its Kirkland Signature Bath Tissue. It sells more than a billion rolls every year, bringing in over $400 million dollars in revenue. Costco's toilet paper is thicker and more absorbent than most other brands. It is also less expensive per sheet than many other brands.

Why are customers loyal to Costco? ›

The warehouse retailer has built up a loyal following of shoppers over the decades it's been operating. It has low prices, rarely raises its membership fees, and pays its workers well.

Why is Costco so loved? ›

Excellent Customer Service. “Costco's excellent reputation for customer service and satisfaction has helped them build a loyal following among their affluent clientele,” Anderson said. Among Costco's standout customer service offerings are its free concierge technical support services and generous return policy.

What are the cons of Costco? ›

Before you sign up for a Costco membership, consider these three serious downsides.
  • It's more expensive than Sam's Club or BJ's. The first big downside to Costco membership is the high cost of joining. ...
  • Online prices are higher than in-club prices. ...
  • Perks of the upgraded membership aren't that great.
May 12, 2024

What is a threat to Costco? ›

Threats. Intense Competition: The retail industry is fiercely competitive, with players like Walmart and Amazon vying for market share. Costco must continuously innovate and adapt its offerings to stay ahead of competitors who are also expanding their warehouse and online operations.

Is Costco for wealthy people? ›

Stores renowned for great deals often continue to be where even the rich shop, and Costco in particular stands out as a great store for people of all levels of wealth. Not only can you find great deals at Costco, but the warehouse store has a lot of other positive attributes.

Why am I obsessed with Costco? ›

Everybody loves a good deal, and at Costco, you get deals in bulk – buying in large quantities can mean huge savings over time. Whether it's pantry staples, cleaning supplies, or office goods, buying in bulk at Costco is a smart way to save money.

Why do old people like Costco so much? ›

Joining a warehouse club like Costco could help you control your spending. Seniors can benefit from joining Costco by getting prescription drug discounts, more affordable groceries, and travel discounts.

Why is it better to shop at Costco? ›

Competitive prices on everything you buy

Costco warehouses carry about 4,000 products, compared to about 30,000 for most supermarkets, according to the Costco website. By being selective and only carrying products it can sell at a competitive price, Costco is able to provide value for its members.

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