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.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

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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

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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

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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

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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 customers love Costco? ›

Membership Has Its Benefits

Members pay $60 for regular access or $120 to get Executive level perks. These fees are a major part of Costco's profitability. The fee itself is a factor in increasing loyalty - it's a “sunk cost” that encourages consumers who have made the investment to keep spending there.

Why do people like to go to Costco? ›

“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.

Why is Costco better than other stores? ›

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.

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.

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.

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.

Why do you admire Costco? ›

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.

Why is Costco so addictive? ›

So the core ingredient in Costco's addictive drug is its value proposition that stands for high-value products at the lowest prices. How does Costco manage to offer such down-and-dirty prices? For starters, it has enormous economies of scale.

Who is the biggest competitor to Costco? ›

Costco Wholesale Corp's (COST) main competitors in the highly competitive retail market of large discount stores are Walmart Inc. (WMT) and Target Corporation (TGT). These companies are also sometimes classified as consumer defensive stocks.

What's different about Costco? ›

Commitment to quality. Costco warehouses carry about 4,000 SKUs (stock keeping units) compared to the 30,000 found at most supermarkets. By carefully choosing products based on quality, price, brand, and features, the company can offer the best value to members.

Why is Costco better than its competitors? ›

Costco's competitive advantage and positioning strategies work hand in hand. Their low prices and high quality attract customers, while the exclusive membership and limited selection keep them coming back. Again, if you invest in a membership, you're very likely to use it.

Why does everyone go to Costco? ›

Costco (COST) is a warehouse club that offers consumers bulk goods. Buying in bulk can provide consumers with significant savings when compared to buying consumer items in traditional retail stores. Bulk purchases are particularly beneficial to large households.

What is Costco unique selling point? ›

The Psychology Behind Low Prices

One of the key elements of Costco's marketing strategy is its unique pricing approach. Costco offers its products at low prices, often lower than its competitors. This attracts price-conscious customers who are always on the lookout for the best deals.

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.

Why do people love working for Costco? ›

We take care of our employees.

Our operational practices, benefits, and paid time-off policies acknowledge and reward employees for their continued contribution to our culture and success. We are committed to providing our employees with rewarding challenges and ample opportunities for personal and career growth.

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