Costco reveals shift in shopper spending behavior

As the economy struggles and many Americans look for ways to save money, Costco has proven resilient. The chain has continued to grow its membership and retain nearly 90% of its members worldwide.

That shift may signal a broader change in how middle-class shoppers are spending.

“Costco’s jump in March 2026 sales isn’t just about cheap hot dogs. It’s proof that the middle class is retreating from the ‘convenience’ of the corner store and moving into saving at the warehouse,” RTMNexus CEO and TheStreet Advisor Dominick Miserandino shared with TheStreet.

“At Q2 end, we had 40.4 million paid executive memberships, up 9.5% versus last year. We ended the quarter with 82.1 million total paid members, up 4.8% versus last year and 147.2 million cardholders, up 4.7% year-over-year,” CFO Gary Millerchip said during the warehouse club’s second-quarter earnings call.

He also shared the company’s retention rate.

“In terms of renewal rates, at Q2 end, our U.S. and Canada renewal rate was 92.1%, down 10 basis points from last quarter; and the worldwide rate came in at 89.7%, unchanged from last quarter,” he added.

These numbers come despite the company raising its membership rates in Sept. 2024 by $5 to $65 for Gold membership and by $10 to $130 for an Executive membership. The increase, however, may have actually helped the brand.

“Over the past two years, Costco has made several moves that risked upsetting its famously loyal customer base – including raising membership fees in September 2024 and restricting food court access to members only. But visit data suggests that, rather than deterring shoppers, these changes have supported rising engagement and a broadening customer base,” according to Placer.ai.

Placer.ai’s data show that the membership price hike may have had an unintended impact.

“By raising the ‘cost of commitment,’ Costco may be discouraging casual or opportunistic users while deepening engagement among shoppers who do the math and shop more frequently to justify the fee,” the data firm wrote.

Costco has continued to see customers spend more money when visiting its warehouse club.

“Worldwide, the average transaction was up 7.8%, which includes the impacts from gas inflation and FX. Excluding gas inflation and FX, average transaction was up 4.6%,” Director of Financial Planning and Investor Relations Andrew Yoon said in prepared remarks the chain released about its March sales.

Related: History of Costco: Company timeline and facts

He also shared which categories were growing the most.

“Foods and sundries were positive low to mid-single digits. Better-performing departments included food, candy and sundries. Fresh foods was up mid- to high single digits. Better-performing departments included bakery and meat,” he added.

Food was not the chain’s only winner.

“Nonfoods were positive mid- to high single digits. Better-performing departments included jewelry, majors and hardware. Ancillary business sales were up mid-20s. Pharmacy, gas and food court were the top performers. Gas was up mid- to high 20s, driven by price per gallon changes year-over-year as well as an acceleration in volume growth,” he shared.

The chain shared its sales for the year in an SEC filing.

Net sales for the first 31 weeks were $173.26 billion, an increase of 9.1 percent from $158.87 billion last year.

Costco has seen higher gasoline sales volumes amid rising fuel prices, CFO Gary Millerchip said during the chain’s second-quarter earnings call.

Anecdotally, several South Florida Costco locations show steady traffic at fuel stations, particularly during peak hours, with lines frequently forming at the pumps.

Zacks’ analysts grouped Costco and Walmart together to explain why both are doing well in a challenging economy.

“What makes WMT and COST comparable is that both companies are winning with a similar playbook: low prices, strong private-label offerings, efficient supply chains and growing digital capabilities. Both also use membership-related income to deepen loyalty and support profitability,” Zacks shared.

It is a timely comparison because both retailers are navigating the same retail backdrop of cautious but resilient consumers, moderating inflation and rising demand for convenience.

The analysts noted that Costco’s membership fees create a stable and high-margin stream of revenues.

“This recurring income gives Costco the flexibility to maintain low merchandise margins, strengthen its value proposition and reinforce long-term customer loyalty in a highly competitive retail environment,” the company added.

GlobalData Managing Director Neil Saunders explained Costco’s simple proposition to members on RetailWire.

“Costco’s business is built on the principle that members pay a fee to access great value. As Costco mostly makes its profit from those fees, all actions are designed to protect renewals,” he said.

His Brain Trust colleague WhyteSpyder Vice President of Partnerships Scott Benedict backed up his opinion.

“The goal is not to maximize margin on each item or category, but to deliver the lowest possible cost structure to the member and earn the majority of profit through membership growth and renewal,” he wrote.

Related: After bankruptcy, Hooters closes restaurants, fights for survival

This story was originally published by TheStreet on Apr 14, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.