Costco's popularity continues to soar as Aussies look for new ways to cope with cost-of-living pressures.
Recent reports indicate a 20 percent increase in business at the discount grocery wholesaler. Costco in Australia and New Zealand reported $4.4 billion in sales in 2023, an increase from 2022 sales across their 15 locations.
They have clear points of difference to traditional supermarket chains which have helped them create a unique place in the market and establish a loyal customer base.
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Here are the main differences between Costco and traditional supermarkets in Australia.
1. No food at the entrance
Costco has no food displayed at their entrance, instead using this expansive area to tempt shoppers with non-food items including electronics, watches and, from July, an elaborate Halloween display.
This gives you a sense that you are in for an adventure.
The craziest and coolest things you can buy in bulk at Costco View Gallery
While you may not see any food products upon your arrival at the wholesale warehouse, you'll certainly smell them.
During my most recent visit I was hit by a wave of aroma of choc chunk cookies and I not only sampled them at a sample station, but bought them and ate them all week.
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2. Everything in bulk
Almost everything at Costco is a bulk purchase. You aren't shopping for the week, you are stocking up for the month, if not more.
This may be why there are no shopping baskets at Costco, just large trolleys which you will most certainly need.
Costco made bulk purchasing popular again with everyday Australians when they opened their first store in 2009.
I find that buy stocking up on items such as flour, sugar and passata, I am visiting my local supermarket less for essentials such as this, which means I am saving on impulse purchases.
3. Unique pricing
You'll notice that Costco items are priced differently than groceries at other supermarkets. It isn't unusual to see something priced at $19.98 instead of $19.95 or $20.
This can make it difficult to calculate your spend as you go.
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All you need to circumvent this is your phone. I search up items on my phone to ensure I am getting the best per unit price, and use my calculator to keep track of my spend so I'm not surprised at the check out.
Observing my fellow Costco shoppers, I noticed may doing the same.
4. Lack of signage
Aisles aren't clearly marked at Costco, leaving customers no choice but to traverse up each and every aisle to find what they need.
This means being exposed to more products, increasing the chance of you making an unplanned purchase.
All you need to do in this instance is focus on your shopping list for the day and note down items you may wish to buy later.
Remember, Costco is an experience, an adventure, it isn't a pop-in-pop-out experience. It is designed that way. The longer you stay the more you will buy.
5. Disorganised style
Costco and Aldi have both adopted a disorganised style in their stores to give the impression of affordability.
Costco goes one step further, with pallets of bulk purchases on display for customers to help themselves too.
This gives it a market vibe and reminds shoppers of how affordable purchases at Costco can be.
6. Less variety
Costco has much less variety that other supermarkets, leaving customers with the impression that they are getting the best quality and lowest price item. This usually comes in the form of their signature Kirkland brand.
Staples such as flour and sugar are versatile already and there isn't much need for variety.
You will find some variety with items such as rice and cheeses, in bulk purchases so they last.
7. Unusual items
Costco has gained notoriety by selling items not usually found at supermarkets. While most customers head to Costco to save on pantry staples, they can also do birthday and Christmas shopping at the store.
And yes, Costco sells coffins, and car tyres and my local has a petrol station! I also spotted lots of fun toys which makes it difficult to shop at Costco with kids and still save.
But, this is all part of the adventure.
8. Membership requirement
Membership at Costco starts at $65 per year and the money they make from this is passed on to customers in the form of savings.
The membership requirement also gives customers the feeling of being part of an exclusive club, which they certainly are.
The rules surrounding memberships serves to strengthen this feeling, with customers unable to share their memberships outside of their households.
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