Regarding competition, Costco often rises above the rest for its discounted goods and trusted private-label brand, Kirkland. Yet behind Costco’s cheap goods lies pesky membership fees (which are rising!) and the issue of over-purchasing when it comes to bulk shopping. Now, the idea that spending more saves you more may ring true but also results in a higher cost per visit each year when compared to other retailers like Walmart and Target. Here’s how each retailer stacks up:
READ MORE: The Best Ways To Save Money While Stocking Up At Costco And Other Stores
Costco Shoppers Spend More Per Visit Than Walmart And Target
As reported by Business Insider, data from analytics firm Numerator found that the average Costco customer spends about $100 per visit to the wholesaler and visits about 30 times a year, spending $3,000 on average per year at the store.
When compared to Walmart, Costco customers spend far more per visit, but less overall. At Walmart, the average shopper visits once per week, spending $54 per trip. But, they visit on average 65 times per year, spending roughly $3,510 per year.
Despite Target being known as the place you go in for one thing and exit with seven, the average Target shopper spends far less per visit and overall per year compared to both Costco and Walmart. The average customer spends about $50 per trip to the store and makes around 23 trips per year, spending $1,150 at the store in a year.
READ MORE: Walmart Adds Automatic Surcharge On Shopping Bags Amid ‘Scamming’ Controversy
Who Is The Typical Shopper At Costco, Walmart, And Target?
Utilizing Numerator's data, Business Insider created shopper profiles for each of the retailers and they may surprise you.
The data firm found that Costco's typical shopper is an Asian-American woman with a four-year degree or higher earning more than $125,000 per year living in the Pacific Northwest (which makes sense since Costco was founded in Seattle and based out of Washington). The typical customer shops in the grocery and personal care sections in the store.
At Walmart, the data found that the average Walmart shopper was much more in line with the average US consumer, which tracks since Walmart is the largest retailer in America—they did $600 billion in sales last year, compared to $227 billion at Costco, and have over 5,000 stores across the country. According to the data, Walmart's average shopper in the US is a suburban white woman in the Southeast with an undergraduate degree, earning roughly $80,000 per year. She primarily shops at Walmart for groceries.
Target falls behind the other two retailers as the seventh-largest retailer in the world, bringing $106 billion in sales last year.
But, the average customer is shopping in different categories compared to Costco and Walmart; Target reports that sales are similar across apparel, food, appliances and sporting goods, and home furnishings, with beauty and household goods accounting for a quarter of their revenue. According to Numerator, the average Target shopper is a white suburban mom with a college or 4-year degree and a household income of $80,000.
As reported by Apartment Therapy, it's important to use discretion with these customer profiles. The data firm Numerator created its findings based on the firm’s own Receipt Hog app, which means that the averages and profiles could represent just a portion of each retailer's shoppers.
