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 a question of when not if," he said.
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.
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