Costco Captured $2.5 Billion in Annual CPG Spending
The retailer gained 4.5 million new households as consumers shifted spending away from traditional grocery chains.
Updated on Sept. 28, 2026 in Consumer Goods
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Costco expanded its share of wallet by $2.5 billion over the past year by adding 4.5 million households to its membership base. This shift in consumer spending primarily impacted major competitors like Walmart, Kroger, and Albertsons, as well as independent retailers.
Why it matters
The migration of consumer spending to Costco suggests a tightening market for traditional grocery operators, who face direct pressure from the warehouse club's membership-driven growth. This trend reflects a broader shift in where households choose to allocate their budget for essential goods.
Costco captured $2.5 billion in CPG spending over the past year, while major chains including Walmart, Kroger, and Albertsons lost over $1 billion combined. Additionally, independent retailers saw a $570 million shift in spending to Costco.
The players
Costco
A global warehouse club retailer operating on a membership-based business model with a focus on high-volume, low-margin inventory.
Walmart
The nation's largest retailer, operating a diverse mix of hypermarkets, discount department stores, and grocery stores.
Kroger
A major American retail company that operates supermarkets and multi-department stores across the United States.
Albertsons
A large grocery chain operating hundreds of stores under various banners throughout the United States.
The details
Costco fueled this growth through a dual strategy of expanding its physical store base and aggressively growing its e-commerce channel. Nearly 2.5 million more consumers utilized Costco.com, contributing $300 million sourced from competitive retailers, with an average basket spend of $108. While branded item sales grew three times faster than the company's Kirkland private label, which rose 3.1%, the retailer saw lower-income households make 1.8 million fewer trips.
Timeline
Over the past year, Costco added 4.5 million new households to its membership program.
Market Landscape
This performance marks a significant acceleration of a long-standing trend where warehouse clubs capture market share from traditional grocery operators. It highlights how consumer budget consolidation into membership-based channels continues to challenge traditional retail shelf-space dynamics.
Operators should evaluate their value proposition against the $108 average online basket spend seen at Costco to identify potential vulnerability in similar item categories. Monitoring the shift of consumer spending away from independent and traditional retail formats is essential for near-term inventory planning.
The takeaway
The rapid migration of billions in spending to warehouse models highlights a clear preference for bulk-buying efficiency that traditional retailers must now counter. Operators should monitor their own customer trip frequency data as a signal for whether their current pricing or loyalty program is effectively competing with club-level value.
Further reading
For more on industry shifts, visit the Consumer Goods section.
Source note: This article includes information reported by Chain Store Age.
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