Recent research shows that when it comes to grocery shopping, high-income Americans tend to favor Costco. A survey conducted by YouGov found that 11% of individuals with annual incomes of $150,000 or more identified Costco as their primary grocery store. Other notable options included Kroger at 10% and Walmart Supercenter at 8%; 14% of respondents selected “other.”
Costco, known for its bulk items and competitive pricing, stands out despite the requirement of an annual membership fee. High-income households, defined as those earning above $150,000 — more than double the U.S. median household income — account for about 10% of the population, according to YouGov.
Interestingly, over half (51%) of these high-income households reported spending at least $150 weekly on groceries, while only 28% of low- and middle-income households did the same.
On the other hand, Walmart Supercenters dominate as the preferred grocery store among middle- and low-income families, with 20% stating it’s their go-to. Only 5% named Costco as their top choice in this demographic.
Followingly, Walmart ranked second, chosen by 12% of low- and middle-income shoppers. Both Kroger and “other” IKEA took the third spot, with each capturing 10% of respondents. Phil Lempert, a food industry analyst, expressed that the findings of the study were to be expected.
Lempert noted that wealthy households often consist of larger families, aligning perfectly with Costco’s model of larger packages. He added, “Wealthy people typically shop more frequently, seeking value, and their ability to save money often stems from a frugal mindset.”
Costco membership fees range from $65 to $130 per year. Lempert believes this cost isn’t a significant barrier for middle- and low-income shoppers; generally, the savings make it worthwhile. He was somewhat surprised by Kroger’s appeal among affluent customers, suggesting location heavily influences shopping preferences, particularly as Costco stores are usually found in large metropolitan areas.
With rising gas prices, Lempert pointed out that people might be less inclined to drive far for groceries. He says, “People are anxious about what the future holds. When feeling uncertain, we tend to become frugal.” As consumers, being smart about shopping has never been more critical.
Lempert’s advice for saving on groceries includes always making a shopping list. He noted that even cheddar cheese sold in specialty cases meets the same USDA standards as the more standard varieties but can cost significantly more.
He also mentioned that seafood on display at counters is often previously frozen and thawed, whereas frozen alternatives could be cheaper. For an efficient shopping experience, he suggests considering online grocery orders for in-person pickups, emphasizing that strategic shopping can help manage the rising cost of food.
