One grocery chain is winning over wealthy Americans more than its rivals

Costco leads the rich shopper list

When grocery prices stay high, even people with bigger paychecks look for strong value. A recent YouGov survey found that Costco was the top primary grocery store among Americans earning at least $150,000 a year, with 11% choosing it.

That put Costco ahead of Kroger at 10% and Walmart Supercenter at 8% in that higher income group. The result shows that bulk savings and convenience can matter just as much as upscale branding.

Costco beats flashier grocery rivals

Some people may expect wealthy shoppers to crowd into premium stores first. But the YouGov findings suggest that many higher-income households still shop at Costco for most of their grocery shopping.

That says a lot about how people shop when they want lower unit prices, larger packages, and one-stop trips. Even shoppers with healthy incomes seem to care about stretching dollars when food bills keep climbing.

Costco wins despite membership fees

Costco’s edge is even more striking because shopping there often requires a paid membership. On Costco’s official site, a Gold Star Membership costs $65 a year, while the Executive level costs $130 a year.

Even with that extra cost, many high earners still see the chain as worth it. The mix of bulk sizes, lower per-unit pricing, and household staples makes the fee easier to justify.

Big weekly bills shape store choices

The survey also found a clear spending gap between income groups. About 51% of higher-income households reported spending more than $150 per week on groceries, compared with 28% of middle- and lower-income households.

That helps explain why warehouse shopping can appeal to affluent families. When a household buys more food each week, bigger baskets and lower per-item costs can matter a lot over time.

Fun fact: The U.S. Census Bureau said real median household income was $80,610 in 2023.

Higher incomes do not kill frugal habits

A food industry analyst told Fox News Digital that wealthier households often still think carefully about value. Phil Lempert said people with more money are not always chasing luxury, as many remain financially comfortable by being frugal.

That matches the Costco story well. A shopper can earn a strong salary and still prefer lower prices, larger packs, and a store built around practical spending rather than fancy presentation.

Little-known fact: Unit-pricing laws in many states help shoppers compare value by price per ounce or per pound.

Household size may help Costco, too

Lempert also pointed to household size as part of the answer. Phil Lempert argued that larger households may be one reason Costco appeals to some higher-income shoppers, since bigger families can make better use of bulk sizes.

That is one reason Costco’s model can click with this group. Large carts, pantry loading, and family-sized products make more sense as more people regularly eat at home.

Walmart still rules over other shoppers

Costco may lead among higher-income shoppers, but it tells a different story in the broader market. YouGov found that Walmart Supercenter was the top primary grocery store among middle- and lower-income Americans, with 20% choosing it.

That gap highlights how shopping habits change across income levels. Costco attracts more affluent households, while Walmart keeps a stronger grip on shoppers looking for broad access and no membership barrier.

Kroger’s showing surprised analysts

Costco finishing first may not shock many people, but Kroger’s performance also drew attention. In the YouGov survey, Kroger ranked second among higher-income Americans at 10%, just one point behind Costco.

Lempert said that the result surprised him somewhat. Still, he noted that people often shop where they live, and store access can shape habits as much as income or brand image.

Location matters more than people think

Costco is not equally spread across all market segments. Lempert noted that Costco stores are concentrated in larger metro and suburban areas, which may help explain why some affluent shoppers use them more often.

That matters because convenience can decide where groceries get bought. A store can offer great prices, but it still has to be close enough to fit into a family’s routine.

Gas prices can change the math

Lempert said distance can weaken the savings case for warehouse shopping, especially when higher gas prices make people less willing to drive out of their way for groceries.

That means Costco’s value pitch works best when the warehouse is already part of someone’s normal route. For many households, distance can erase a bargain faster than expected.

Smart shoppers still use a list

The survey may focus on store choice, but it also points to a bigger habit: planning matters. Lempert told shoppers always to use a list, a simple move that can cut impulse spending and keep a grocery trip focused.

That advice fits warehouse stores especially well. Big carts and big package sizes can save money, but they can also lead to overspending when shoppers grab more than they really need.

Fancy-looking food is not always better

Lempert also gave examples of how shoppers can pay more without getting much extra. Lempert said some specialty-case cheddar can meet the same USDA standards as cheese in the dairy aisle while costing 20% to 30% more.

That is a useful reminder for every budget. Packaging, placement, and presentation can shape what people buy, even when the product quality standard is very similar.

For another grocery update tied to labels, shopper choices, and California rules, see why new food labeling changes could reshape store shelves.

Value still wins the grocery battle

The biggest takeaway is simple. Costco’s lead among higher-income Americans suggests that wealth does not automatically push shoppers toward the fanciest stores, because value still carries real power in the grocery aisle.

For many families, even affluent ones, smart shopping is part of staying comfortable. In a time of stubborn food costs, the store winning over wealthier Americans is the one promising savings in plain sight.

For another grocery update tied to small-town access, local ownership, and food costs, see why Minnesota communities are rethinking rural stores.

Would you pay more for groceries if one store felt cleaner, easier to use, and more reliable? Share your thoughts and drop a comment.

This slideshow was made with AI assistance and human editing.

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