Study reveals how much money you spend every minute you’re at Costco

A study has found that Costco shoppers may be getting more than they bargained for, and not just in savings.

While known for offering unbeatable bulk deals, a new analysis suggests that the longer you spend in a Costco store, the more money you’re likely to part with – to the tune of $1.75 per minute.

As they say, you don’t go into Costco knowing what you want, Costco tells you what you need.

This startling statistic comes from a collaboration between business news outlet Morning Brew and Phil Andrews of the YouTube channel maxinomicsmb, which delves into consumer spending patterns.

Costco customer spending habits revealed

According to their findings, the average Costco shopper spends about 37 minutes in the store, racking up a bill of nearly $65 by the time they leave. But that’s just the average – many customers admit to spending much longer.

Unsplash: omar abascal

Costco customers spend an average of $1.75 every minute they are in store.

“I spend 37 minutes in each aisle,” one shopper joked in the comments of the Instagram post revealing this information, while another claimed their Costco trips typically last up to two hours, potentially leading to a checkout bill of around $210.

Costco’s success in getting customers to spend isn’t just by accident, either. Andrews points out that the wholesale giant strategically designs its stores to encourage longer browsing sessions.

“The reason food samples are placed in the back of the store is to make sure customers have to walk through aisles and get distracted along the way,” he explained.

And with no directional signs, it turns into a “treasure hunt” of sorts – one that’s bound to lead to unplanned purchases.

Interestingly, Costco beats out retail competitors like Target and Walmart in terms of “dwell time” – the time customers spend wandering around. Part of this is due to the lack of curbside pickup or delivery options, forcing shoppers to physically explore the store’s extensive inventory.

“People pay to go in,” Andrews noted, reminding viewers that the very structure of Costco’s membership model makes shoppers feel the need to maximize their visit. And it’s working. Costco’s revenue per square foot of floor space now stands at a whopping $1,900 – a 40% increase since 2019, even after accounting for inflation.

While Costco has raised its membership fees recently, one thing isn’t budging – the price of its famous soda and hot dog combo, which remains a staple of the Costco experience.

Flickr

The Costco food court is where the prices always stay the same.

Andrews joked that shoppers shouldn’t worry about the 50-cent savings on that meal, as their partners will likely spend far more during the 10 minutes they spend in line waiting for it.

For many, Costco’s treasure-hunt-like shopping experience is part of the appeal, with one commenter remarking, “The best part of Costco is the treasure hunt. And with the holiday season coming, every inch will be filled with great finds.”

However, some savvy shoppers are finding ways to beat the system. “This is why I use Instacart for Costco,” one person shared, noting that the $14 tip is far cheaper than the impulse buys they’d otherwise make.

So, next time you head to Costco for “just a few items,” remember – the clock is ticking, and so is your spending.

If you’d like to be even more savvy in Costco, check out our guide on Costco’s pricing secrets.