It’s a good time to be a Costco member. Business is booming, and the company’s stock has outperformed expectations. For consumers, that means the deals are strong.
Here’s how shoppers can save even more on Costco’s already affordable groceries.
A Little Costco-Nomics
There’s a secret or two behind Costco’s low prices.
While a typical supercenter sells over 100,000 products, Costco stores only carry around 4,000. That’s fewer than most supermarkets, which carry around 30,000 products.
Although the warehouse layout may give the impression of bulk shopping, don’t be fooled. Costco’s shelves are selectively stocked.
The chain’s limited inventory strategy has created a catalog of customer favorites, allowing each item to sell well and stay affordable, even in the face of inflation and tariffs.
“By carefully choosing products based on quality, price, brand and features, the company can offer the best value to members,” the company states on its website.
The smart business model has paid dividends. In Costco’s most recent fourth-quarter earnings report, the company performed steadily, increasing sales by 8% to $84.4 billion—up from $78.2 billion last year.
That brought Costco’s net income for the quarter to $2.61 billion, or $5.87 per share. That’s above the warehouse chain’s net income per share of $5.29 during the same quarter of the previous year.
Up to 5X Reward Rate
Earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstores and dining, including takeout andRead More
Welcome Bonus
Earn $200 cash back
Annual Fee
$0
Regular APR
18.99% – 28.49% Variable
Credit Score
Good, Excellent (670 – 739)
- Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.99% – 28.49%.
- No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
How You Can Save More
Though Costco prices are touted for being inflation-resistant, a little extra savings never hurt anyone. The best credit cards that reward grocery purchases can help members stretch their dollars even further.
- Wells Fargo Active Cash® Card (rates & fees): For those who prefer straightforward rewards, the Acitve Cash card offers a flat rate 2% cash rewards on purchases with no annual fee. New cardholders can also earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Chase Freedom Unlimited®: The Chase Freedom Unlimited is another option for shoppers who want cash back without juggling rotating categories. Cardholders earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases. The card has no annual fee, and new users can earn $200 cash back after spending $500 on purchases in the first 3 months from account opening.
- Costco Anywhere Visa® Card by Citi*: If you’re a Costco member anyway, the Costco Anywhere Visa is a must-have. The card offers 5% cash back on gas at Costco and 4% cash back on eligible gas and EV charging purchases for the first combined $7,000 spent annually, 1% thereafter, 3% cash back on restaurants and eligible travel purchases, 2% cash back on purchases from Costco and Costco.com and 1% cash back on all other purchases. A Costco membership is required to apply. There’s no annual fee as long as you have a paid Costco membership.
Bottom Line
Costco membership comes with plenty of perks, like famously steady rotisserie chicken prices that seem to defy inflation. Shoppers can save even more by using credit cards that offer grocery rewards, especially Costco’s co-branded card.
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