The quick answer? It depends.
Key points
- Many consumers are looking to save on their purchases now that inflation is raging.
- If you're torn between Costco and Walmart, here's what you need to know.
These days, many consumers are doing their best to cut back on spending to conserve funds. That's because inflation is forcing a lot of people to bust their budgets simply to purchase essentials.
Also, some folks may be worried about an impending recession and want to boost their savings account balances to prepare for one. If you're in that boat, you'll no doubt want to spend as little as possible on things like groceries and household products.
Now to that end, there are several stores known for their affordable price points. And both Costco and Walmart top that list. The question is: Which one offers better deals?
And the answer? It depends what you're buying.
A tricky decision
Costco is known for its ultra-low prices on bulk items. But Walmart offers really low prices, too. As such, it's very hard to say which of the two stores offers the best deals, because often, that will boil down to the specific things you're looking for.
If you're purchasing household essentials like eggs in bulk, then Costco is probably your better bet. The same generally holds true for bulk produce items, like fruits and vegetables, as well as meats and certain dairy products.
But Walmart can be very competitive on things like toilet paper and paper towels. In fact, you might manage to snag better prices on those items when you buy them in bulk at Walmart versus Costco -- unless Costco happens to have them on sale.
Plus, Walmart's store brand snacks can be very affordable. And while you might pay a slightly lower price per pound or unit at Costco, you may also not need a box of 180 sandwich cookies. Rather, Walmart's low-cost 40-cookie package might suffice.
Walmart may win on non-grocery purchases
Costco has a rotating inventory of items like clothing, books, toys, and housewares. But Walmart's selection of these items tends to be far more extensive and consistent. And for that reason alone, you may find a better deal at Walmart on things like apparel, gadgets, or entertainment items simply because you have more of a range to choose from.
Which store should you shop at?
Choosing between Costco and Walmart is a tough call. Ideally, your best bet is to try to research prices ahead of time to see which store offers the better deal on the specific things on your list. But that may not be feasible on a regular basis. And so what you may want to do is try rotating between both stores for a few weeks, comparing your receipts, and seeing which option seems to work out best for you.
Ultimately, both Costco and Walmart offer competitive prices. So to some degree, you really can't go wrong with either one if your goal is to save as much as possible in the course of doing your shopping.
If you're really torn, you may want to consider the proximity of each store to your home. If visiting one store means doing twice as much driving as the other, that alone could be your deciding factor.
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FAQs
And overall, while Costco prices are better, Walmart still has very good prices. For me, though, shopping in bulk as Costco allows me to do not only saves money but also time and energy since I can buy cases and big bags all at once!
What's better Walmart or Costco? ›
Membership
Shopping at Costco requires a membership, compared to no membership required at Walmart. Costco charges $60 for Gold Star members or $120 for Executive members. Winner: Walmart is clearly the winner here, but it's important to consider how much shopping in bulk can save you.
Do you save a lot of money shopping at Costco? ›
Shopping in bulk at Costco or another wholesale store can save you a ton of money. Buying in bulk is a tried and true way to slash your monthly spending, but if you've ever wondered how much you can save shopping at a discount, bulk retailer such as Costco or Sam's Club, you're about to find out.
Is milk cheaper at Costco or Walmart? ›
Milk. It's always good to know the cost of one of the most common purchases. Costco sells 2 gallons of Vitamin D milk for $5.99, which is about $3.00 per gallon. When I surveyed prices last week, Walmart offers a gallon of milk for $3.16.
Is Costco cheaper than grocery stores? ›
If you buy food at Costco, you generally save because the chain doesn't mark up products as much as typical grocery stores, Demer says. “Costco prices average 10% less than the local big-box retailer,” she adds. But that doesn't mean everything is a good value.
Is Costco worth the membership fee? ›
Impulse shopping at this store could cause more harm than good for your grocery budget. Last, Costco memberships are extremely helpful for larger households, so if you have a large family, a Costco membership is a good bang for your buck. It'll also ensure that you'll go through the bulk items in a fair amount of time.
What are the cons of Costco? ›
Take this short survey to help us find the best and worst Costco in America.
- Warehouse items aren't available online. ...
- Prices might be higher on the website. ...
- There's no price matching. ...
- Frozen items have additional fees. ...
- Shipping is not free. ...
- Some items can't be shipped. ...
- There's a surcharge for non-members.
Competitive prices on everything you buy
Costco has a well-deserved reputation for affordable prices, and that applies to its entire inventory, so it's easy on your personal finances. Whether you go to Costco for groceries, electronics, furniture, clothes, or anything else it offers, you can expect good deals.
Is Costco cheaper than Sam's Club? ›
Does Costco or Sam's Club Have Better Prices? Overall, the prices at Costco tend to be cheaper. However, Sam's Club has a greater selection of name-brand products and a cheaper membership fee.
How much do I need to spend to get Costco 1000 back? ›
Spend any more than that, and the rest of the reward is profit to spend on more groceries. To hit the maximum $1,000 reward, one would have to spend over $50,000 annually.
Costco doesn't offer free or discounted memberships, but rest assured that the cost of membership can be recovered quickly thanks to massive price savings once you start shopping.
How do I get the most cash back from Costco? ›
Costco Anywhere Visa® Card by Citi
- 1% cash back on all other purchases.
- 2% cash back at Costco and Costco.com.
- 3% cash back on restaurants and most travel purchases.
- 4% cash back on gas and EV charging purchases (both at Costco and other gas stations) on up to $7,000 of spending a year, then 1% back.
By buying products in bulk, Costco is able to pass on savings to its customers. Costco also keeps its costs low through its no-frills store design, its limited product selection, low employee turnover, and by selling many of its products through house brand Kirkland Signature.
Is it cheaper to shop at Target or Costco? ›
In most cases, Costco wins the price game, though sometimes the savings are minimal enough that it might not warrant the hassle of storing mass quantities. But there are definitely a few products that give Target the edge. Here's how they stacked up. Note: Costco prices vary by store.
Is there a cheaper store than Walmart? ›
What is the cheapest grocery store? If you are going by the everyday low prices at the store, the clear winner to the cheapest grocery store in 2023 is Aldi. Walmart is a runner up, with Meijer and Kroger trailing behind.
Is Costco cheaper worth it? ›
Almost Everything Is in Bulk
That means that if you live alone or in a very small apartment, a Costco membership may or may not be worth it. For large families or shoppers who are interested in buying in bulk, a membership makes more sense.
