Yahoo Finance 4 Reasons Gen Z Loves Costco So Much
The next time you go on a Costco run, take a look around you. Many of your fellow Costco shoppers are Gen Zers.
In October 2023, GOBankingRates surveyed 1,021 Americans to learn more about their grocery shopping habits. Nearly 15% of respondents between ages 18 to 24, along with 17% of those ages 25 to 34, said they shop at Costco.
See: 10 Best New Items Coming to Costco This Winter
Explore: 6 Unusual Ways to Make Extra Money (That Actually Work)
What motivates this many members of Gen Z to opt for a Costco membership? GOBankingRates spoke with four of them to learn more about why they love to shop at Costco.
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
They Embrace Costco’s Deals in Several Departments
While finding excellent grocery deals is important to Gen Zers — nearly 45% of respondents ages 18 to 24 told GOBankingRates they will shop around for the best deals — it’s not their only shopping priority. Several Gen Zers we spoke to talked about other Costco departments they count on for everyday essentials.
Dominic Wright, CFP and founder of Gen Z Financial Planning, has been able to save money at Costco shopping for everything from bottled water to dog food. He also takes advantage of shopping at Costco’s optical department. At Costco Optical, Wright said he sees his optometrist and orders contacts and glasses to save money.
“Costco glasses and contacts are a huge money saver,” said Wright. “I often recommend peers who see doctors outside of Costco to take their prescriptions to Costco because the prices to have their contacts fulfilled or to get new glasses is so much cheaper than the regular eye doctor’s office.”
Related: Costco Will Give You Free Groceries in Exchange for Old Electronics; Here’s How To Take Advantage
Fiona Frills, CEO of skincare-infused makeup Frilliance, said she likes to shop for supplies — like paper, pens and folders — that can help her better run her business. At Costco, Frills said members will find these supplies available at great deals for high-quality products.
Both Wright and Frills, as well as more Gen Zers who spoke with us, also said they buy gas during their Costco run.
“[Costco] is always the cheapest place to get gas,” said Frills.
They Are Becoming Conscious Shoppers
Pilar Lewis is a publicist at Otter PR. She told GOBankingRates she knew she wanted a Costco membership because of how much she could save when shopping for bulk essentials. Some of Costco’s major selling points for Lewis included buying toilet paper and paper towels in bulk and enjoying the $5 price tag on Costco’s famous whole rotisserie chicken.
Despite all the deals, possessing a Costco membership didn’t inspire Lewis to turn into a Costco shopaholic. Instead, she discovered she became a more conscious shopper because she was buying in bulk.
“I find it keeps me from impulse buying,” said Lewis.
She uses the example of spotting a box of 100 granola bars on sale at Costco. Should she buy it and risk having the excess bulk bars taking up valuable pantry space? Or did she recognize she was grocery shopping while hungry and needed to stick to her budget instead? The answer is the latter.
Costco Helps Them Reach ‘Adulting’ Milestones
Obtaining a Costco membership is viewed as a rite of passage among Wright’s peers, something he described as an “adulting” milestone.
“I admit that I did feel a little older when I became a Costco member,” said Wright, adding that the experience of applying for a membership felt like a visit to the DMV.
Once Gen Zers become Costco members, the warehouse club is present as this generation steadily reaches other future milestones.
Michelle Winterfield is the co-founder of Tandem, a popular fintech app for couples. According to Tandem data, Costco is the third most popular grocery store for couples to shop at. Costco also ranks as the fifth most common store that Gen Z and millennials shop at, ahead of other grocers like Whole Foods, Walmart and Safeway.
Gen Zers considering getting married soon will also be happy to hear their membership can help them save on wedding costs.
“If you sign up for a free Shutterfly account and enter your Costco member number, you’ll get 51% off save-the-dates, wedding invitations, signage, thank you notes — all the paper essentials you need,” said Winterfield.
Other highly discounted wedding items sold at Costco include floral arrangements, honeymoon travel, wedding bands and wedding cakes. For Gen Zers in committed relationships who are ready to take the next step, Winterfield said the savings alone pays for your Costco membership.
They Are ‘Grandfathered In’
As we talk about some of the ways Costco can be there for its Gen Z members as they reach adulthood milestones, we can’t forget to mention the joys of growing up shopping at Costco.
Every Gen Zer GOBankingRates spoke with said their introduction to Costco started with their families who were all club members.
Lewis said her family always shopped at wholesale clubs while she was growing up, including at BJ’s and Sam’s Club in addition to Costco. She describes herself as being “grandfathered in” to the experience via her mother who was a couponer and always in search of the best bang for her buck.
Abbey Bruggeworth is the owner and founder of THE ALL IN HAUS, a branding and marketing agency based in Charlotte, North Carolina. She remembered shopping at Costco with her mom since she was little (and as an adult, she continues to shop there).
“I would try to nail down the best time to make our trip on the weekends to beat the masses,” said Bruggeworth, adding that she was equally as excited to try the samples.
Wright said his parents were also loyal Costco members. As he was growing up, shopping at Costco was a monthly or every other month experience.
Now going on seven years of having a Costco membership, Wright said he looks forward to continuing his membership for many years to come.
More From GOBankingRates
Doing This Could Cut Your Credit Card Interest Rate To 0.99% APR
6 Signs You're More Financially Savvy Than the Average American
This article originally appeared on GOBankingRates.com: 4 Reasons Gen Z Loves Costco So Much
