Costco's latest earnings call revealed something shoppers already suspected: membership renewals are holding near record highs, and the warehouse giant keeps pulling people in with rotating deals on stuff families actually buy.
While grocery inflation has cooled from its 2022 peak, the cost of filling a cart still stings.
That gap is exactly where Costco's model shines, and right now a handful of categories are delivering outsized savings.
Bulk toilet paper and paper towels remain two of the strongest per-unit values in the store, especially when the monthly coupon book drops.
The trick is comparing cost per sheet, not cost per package.
A 30-roll pack looks expensive at checkout, but the math often lands 30 to 40 percent below typical supermarket pricing.
Next, look at the pharmacy and optical counters.
Costco consistently ranks among the cheapest places in America for generic prescriptions, and you do not even need a membership to use the pharmacy in most states.
Optical exams and glasses run well below typical retail, which is why Wirecutter and other review sites keep sending readers there.
Then there is the rotisserie chicken, still holding at $4.99 after years of inflation.
It is a loss leader by design, and it is arguably the single best protein deal in American retail.
Pair it with the $1.50 hot dog and soda combo, which has somehow survived every price hike since 1985.
The store brand now accounts for roughly a third of Costco's sales, and many items are made by the same manufacturers behind name brands.
Coffee, olive oil, vanilla extract, and laundry detergent are frequent winners in blind taste tests and consumer reports.
Costco fuel routinely undercuts nearby stations by 10 to 30 cents per gallon, and the gap widens during price spikes.
For a two-car household filling up weekly, that alone can cover most of the annual membership fee.
Finally, watch the "death star" asterisk.
When you see a price ending in .97 or a star in the corner of the sign, that item is marked down for clearance and often will not restock.
Regular shoppers treat these as treasure hunts, and the discounts can hit 50 percent or more.
Bulk buying only saves money if you actually use what you buy, and Costco's aisles are engineered to make you leave with a $300 cart when you came for milk.
Go in with a list, check unit prices, and skip the impulse electronics.
Our take: the membership pays for itself if you shop strategically, not recreationally.
Final Thoughts
Treat the coupon book and the .97 tags as your shopping list, and let the warehouse work for your budget instead of against it.