A recent study has revealed that shoppers at Costco might be leaving with more than just savings.
While Costco is renowned for its unbeatable bulk deals, an analysis indicates that the longer you are in a Costco store, the more money you are likely to spend – approximately $1.75 for every minute you spend there.
As the saying goes, you don’t enter Costco with a list; instead, Costco will guide you to what you didn’t know you needed.
This surprising statistic comes from a collaboration between the business news outlet Morning Brew and Phil Andrews from the YouTube channel maxinomicsmb, which investigates consumer spending habits.
Insights into Costco customer spending habits
According to their findings, the average shopper at Costco spends around 37 minutes in the store, accumulating a bill of nearly $65 by the time they check out. However, this is merely an average; many shoppers report spending significantly more time shopping.
Costco customers typically spend an average of $1.75 for every minute they are in the store.
“I spend 37 minutes in each aisle,” one shopper humorously commented on the Instagram post highlighting this information, while another shared that their Costco trips usually extend up to two hours, which could result in a total bill of approximately $210.
Costco’s remarkable ability to encourage customers to spend more isn’t coincidental. Andrews notes that the wholesaler meticulously designs its stores to promote longer browsing durations.
“The placement of food samples in the back of the store ensures that customers walk through aisles and can easily get sidetracked,” he explained.
Without directional signs, shopping becomes akin to a “treasure hunt,” inevitably leading to impulsive purchases.
Curiously, Costco outperforms its retail competitors such as Target and Walmart in terms of “dwell time” – the span customers spend wandering. This phenomenon is partially due to the absence of curbside pickup or delivery services, compelling shoppers to explore the store’s vast selections physically.
“Shoppers essentially pay to enter,” Andrews remarked, highlighting how Costco’s membership structure encourages customers to maximize their visit. And it appears effective. Costco’s revenue per square foot is now an impressive $1,900 – up 40% since 2019, even after adjusting for inflation.
Although Costco has recently increased its membership fees, one constant remains – the price of its famous soda and hot dog combo stays unchanged, still a beloved aspect of the Costco experience.
The prices in the Costco food court remain constant.
Andrews humorously advised that shoppers shouldn’t fret over the 50-cent savings on this meal, as their companions are likely to spend considerably more during the 10 minutes they stand in line waiting for it.
For many, the treasure-hunt-like shopping excursion at Costco is part of its charm, with one commenter stating, “The best part of Costco is the treasure hunt. With the holiday season approaching, every corner will be filled with amazing finds.”
However, some savvy shoppers have discovered ways to beat the system. “This is why I utilize Instacart for Costco,” one individual noted, pointing out that the $14 tip is much cheaper than the impulse purchases they would typically make.
So, the next time you visit Costco for “just a few things,” remember – time is money, and your spending can add up quickly.
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