Costco Added Millions of New Households

The retailer captured billions in consumer spending as shoppers shifted away from traditional grocery chains.

Updated on Sept. 28, 2026 in Consumer Goods

Rows of tall industrial shelving packed with bulk cardboard boxes in a vast warehouse store. — Costco added 4.5 million households to its membership base this year, capturing $2.5 billion in consumer spending as shoppers move away from traditional grocery chains. AI Illustration. Upload story photo >

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Are you planning to increase your spending at warehouse clubs like Costco this year?

Costco added 4.5 million new households to its membership base over the past year. This growth helped the company capture $2.5 billion in additional consumer packaged goods spending across the United States.

Why it matters

The company's expansion in membership and e-commerce has pulled significant market share away from established retail competitors. This shift highlights a changing consumer preference for bulk-buying warehouse models over traditional supermarkets.

Costco saw 2.5 million more consumers utilize its website over the past year, resulting in an average online basket spend of $108. While branded item sales grew three times faster than private label products, Kirkland label sales still increased by 3.1%.

The players

Costco

Costco is a multinational membership-only warehouse club that operates a chain of big-box retail stores.

Walmart

Walmart is a multinational retail corporation that operates a chain of hypermarkets and grocery stores.

Kroger

Kroger is an American retail company that operates a large chain of supermarkets and multi-department stores.

Albertsons

Albertsons is a major American grocery company that operates various chains of supermarkets across the country.

The details

Costco successfully leveraged both its physical store base and e-commerce platform to attract new members, with online purchases alone sourcing $300 million from rival retailers. Conversely, the warehouse giant saw lower-income households make 1.8 million fewer shopping trips compared to the previous year.

Over the past year, Costco added 4.5 million new households to its membership program.

Market Landscape

This growth reflects a wider industry pivot where consumers prioritize bulk value models over traditional grocery store formats. Costco’s success effectively consolidates market share, putting increased pressure on national chains to justify their pricing models.

Shoppers may find that shifting their bulk purchases to warehouses can result in significant household budget savings compared to traditional supermarket pricing. However, consumers should weigh the cost of annual memberships against the frequency of their shopping trips.

The takeaway

The rise in Costco membership underscores how warehouse retailers are successfully capturing larger portions of household budgets through e-commerce and bulk-value offerings. Consumers should review their own grocery spending habits to determine if the membership model offers long-term savings.