Costco reveals changing consumer spending behaviour.

As the economy struggles and many Americans are looking for ways to save money, Costco has proved to be flexible. The chain has continued to grow its membership and has retained approximately 90% of its members worldwide.

This shift may indicate a broader shift in the spending patterns of middle-class buyers.

“Costco’s surge in March 2026 sales isn’t just about cheap hot dogs. It’s proof that the middle class is moving away from the ‘convenience’ of the corner store and towards the savings of the warehouse,” rtmnexus CEO and TheStreet advisor Dominic Miserandino shared with TheStreet.

CFO Gary Millerchip said, “At the end of the second quarter, we had 40.4 million paid executive memberships, up 9.5% from last year. We ended the quarter with 82.1 million total paid members, up 4.8% from last year, and 147.2 million cardholders, up 4.7% year-over-year.” (Warehouse club’s second quarter earnings call).

He also shared the company’s retention rate.

He said, “In terms of renewal rates, at the end of the second quarter, our US and Canada renewal rate was 92.1%, down 10 basis points from the previous quarter, and the worldwide rate was 89.7%, unchanged from the previous quarter.”

These numbers come despite the company raising its membership rates by $5 to $65 for Gold membership and $10 to $130 for Executive membership in September 2024. However, the increase may have actually helped the brand.

Over the past two years, Costco has taken a number of steps that threatened to harm its famously loyal customer base — including raising membership fees in September 2024 and restricting food court access to members only. But visitation data shows that, rather than deterring shoppers, these changes have supported increased engagement and a broader customer base,” according to placer.ai.

Data from Placer.ai shows that subscription price increases may have unintended effects.

“By raising the ‘cost of commitment’, Costco could discourage casual or opportunistic users while deepening engagement among shoppers who do the maths and shop more often to justify the fee,” the data firm wrote.

Costco has consistently found that customers spend more money when they visit its warehouse clubs.

“Worldwide, the average transaction grew 7.8%, including the impact from gas inflation and FX. Excluding gas inflation and FX, the average transaction was up 4.6%,” said Andrew Yoon, director of financial planning and investor rPrepare comments:d comments The chain released information about its March sales.

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He also shared which categories are growing the most.

“Foods and miscellaneous items were positively in the low to mid-single digits. The better-performing departments included food, candy, and miscellaneous items. Fresh foods were in the mid- to high single digits. Better-performing departments included bakery and meat,” he said.

Food wasn’t the only winner of the series.

“Nonfood was positive in the mid to high single digits. Better-performing departments included jewellery, major and hardware. Ancillary business sales were in the mid 20s. The pharmacy, gas and food court were the top performers. Gas was in the mid- to high 20s, driven by faster year-over-year price per gallon changes as well as volume growth.”

The chain shared its sales for the year in an SEC filing.

Net sales in the first 31 weeks were $173.26 billion, up 9.1 per cent from $158.87 billion last year.

CFO Gary Millerchip said during the series that Costco has seen an increase in gasoline sales amid rising fuel prices. second quarter earnings call.

Anecdotally, many South Florida Costco locations show steady traffic at fuel stations, with lines often forming at the pumps, especially during busy times.

Zacks analysts grouped Costco and Walmart together to explain why both are performing well in a challenging economy.

What makes WMT and Cost the point of comparison is that both companies are winning with a similar strategy: low prices, strong private-label offerings, efficient supply chains and growing digital capabilities. Both also use membership-related income to deepen loyalty and support profitability.” Jax shared.

It’s a timely comparison as both retailers are operating on a similar retail backdrop of cautious but flexible consumers, subdued inflation and growing demand for convenience.

Analysts said Costco’s membership fees create a steady and high-margin stream of revenue.

“This recurring income allows Costco to maintain low trading margins, strengthen its value proposition, and foster long-term customer loyalty in a highly competitive retail environment,” the company said.

GlobalData Managing Director Neil Saunders tells members about Costco’s simple offer – RetailWire.

He said, “Costco’s business is built on the principle that members pay a fee to access great value. Since Costco makes most of its profits from those fees, all actions are designed to protect renewals.”

His brain trust colleague Scott Benedict, vice president of WhiteSpider Partnerships, echoed his opinion.

“The goal is not to maximise margins on each item or category but to provide the member with the lowest possible cost structure and generate the most profit through membership growth and renewal,” he wrote.

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Road originally published this story on April 14, 2026, in the retail section.