Yahoo Finance Costco Grocery’s Biggest Fans? It May Not Be the Generation You Think
Where are Americans shopping for their groceries? It turns out that your age may have a lot to do with how you answer this question. While the greatest shares of shoppers of all ages mostly shop at Walmart or their local grocery chain, it turns out that younger Americans — namely Gen Z and young millennials — are more likely to shop for groceries at Costco.
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A recent GOBankingRates survey found that 15% of Americans ages 18 to 24 and 17% of Americans ages 25 to 34 do most of their grocery shopping at Costco. That share declines among older generations — 9% of those ages 35 to 44 do their grocery shopping at Costco, 3% of those ages 45 to 54 prefer Costco for groceries, and 6% of those 55 and older shop for groceries at Costco.
Here’s a closer look at why younger generations of Americans may prefer to do their grocery shopping at the warehouse club.
Younger Generations Are Living on Tight Budgets
Between student loan debt and having to deal with soaring living costs on entry-level salaries, many Gen Zers and millennials are living on tight budgets and looking for cost savings wherever they can.
“Costco offers a wide variety of products at affordable prices, which appeals to the budget-conscious nature of Gen Zers and millennials,” said Andrei Vasilescu, CEO of DontPayFull, an online savings and deals site. “Costco’s bulk packaging allows them to stock up on essentials and save money in the long run.”
Costco’s Culture and Values Appeal to These Generations
Costco is known for its fair treatment of employees, including relatively high pay and access to an array of benefits. Gen Z and millennials tend to be value-based shoppers, so this can play into their decision to shop for groceries at the warehouse store.
“Costco aligns well with the values of this demographic,” Vasilescu said.
Young People May Be More Able To Take Advantage of Bulk Buying
It’s pretty common for young adults to live with roommates, so being able to buy groceries in bulk may have more appeal to these generations. They are able to enjoy the cost savings of buying in bulk and splitting costs without having to worry about having too much food that would spoil, which is more likely to happen if you live alone or just with one other person.
Survey methodology: GOBankingRates surveyed 1,021 Americans ages 18 and older from across the country between Oct. 12 and Oct. 16, 2023, asking 23 questions: (1) How much did you spend on your pet in the last year?; (2) How much have you spent/are you planning to spend on Halloween this year?; (3) How much money do you spend on kid-related activities in a year?; (4) How much do you spend on average on your monthly utility bills (electric, heat/gas, water)?; (5) What spending/saving habits have you had to change in the past year due to inflation/rising prices? (Select all that apply.); (6) What was the biggest unexpected expense you had this year?; (7) How much do you currently spend on monthly car payments?; (8) Do you live in a single-income or dual-income household?; (9) In the past year, did you have to take on a side gig because of rising prices/inflation?; (10) How much do you bring home from your side job(s) each month?; (11) How much have your overall expenses gone up in the past year?; (12) What is your top financial priority to end 2023?; (13) What is the top way you’ve earned your money/gained wealth?; (14) Have you started financially preparing for 2024?; (15) How much have you spent on home upgrades in 2023?; (16) How will the resumption of student loan repayments affect your budget?; (17) How much do you currently owe in student loans?; (18) How much do you spend on yourself (not including housing, food, etc.) out of each paycheck?; (19) How much do you spend on online purchases per month?; (20) Where do you shop for groceries most often?; (21) Do you shop around for groceries to get better deals?; (22) What are you currently invested in? (Select all that apply.); and (23) What is the current value of your stock investments? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: Costco Grocery’s Biggest Fans? It May Not Be the Generation You Think
