Costco Upgrades Perks for Members Amid Slowing Growth: What You Need to Know

By Sofia Patel – Wholesome Cooking Enthusiast

Imagine strolling through the vast aisles of your local Costco warehouse, the scent of fresh baked goods mingling with the hum of shoppers filling their carts with wholesome staples like organic produce and bulk nuts for your next family recipe. As I push my cart past towering displays during our weekend hauls in Chicago, I can’t help but feel grateful for the little upgrades that make these trips even more worthwhile. With Costco upgrades perks for members amid slowing growth, the retailer is doubling down on value to keep us coming back, and as a 45-year-old home chef who’s all about creating meals that heal and delight, these changes are a game-changer for busy families like mine. From extended shopping hours to seamless Instacart integrations and boosted gas rewards, these enhancements not only address the dip in membership expansion but also enhance our everyday wellness routines. In this guide, we’ll unpack Costco upgrades perks for members amid slowing growth, drawing from recent announcements and expert insights to help you maximize your membership. Whether you’re stocking up for plant-based meals or meal-prepping for the week, understanding these perks can transform your shopping experience into a more efficient, joyful part of your wholesome living journey in 2026.

Understanding Costco Upgrades Perks for Members Amid Slowing Growth

Costco upgrades perks for members amid slowing growth as part of a strategic push to maintain loyalty in a competitive retail landscape. According to recent earnings reports, while overall sales remain strong, membership growth has eased slightly, prompting the company to enhance benefits to attract and retain shoppers. This move comes on the heels of a fee increase—basic memberships rose $5 to $65, and Executive jumped $10 to $130—yet the added value aims to justify the cost. As someone who’s transitioned to more plant-based eating for sustained energy, I appreciate how these upgrades make sourcing quality ingredients more convenient, tying into trends like exploring functional foods benefits for better health.

The New Extended Opening Hours: More Time for Family Shopping

One standout in Costco upgrades perks for members amid slowing growth is the extension of operating hours at select warehouses. Many locations now open earlier or stay open later, giving busy parents like me flexibility to shop without rushing. For instance, some stores have added weekend hours, perfect for stocking up on fresh veggies for recipes like my roasted sweet potato stacks with chipotle sauce recipe. This perk not only accommodates varied schedules but also reduces crowds, making the experience more enjoyable. According to Yahoo Finance, this initiative directly addresses member feedback for greater accessibility amid economic pressures.

cheapism.com

Costco Officially Changed Its Hours — Here’s Who Benefits – Cheapism

Caption: Costco extended hours sign welcoming shoppers, highlighting one of the key Costco upgrades perks for members amid slowing growth for flexible shopping.

Instacart Benefits: Seamless Delivery for Wholesome Meal Prep

With Costco upgrades perks for members amid slowing growth, the deepened partnership with Instacart stands out for its convenience. Members now enjoy priority delivery slots and waived fees on certain orders, making it easier to get bulk items like collagen powders or matcha straight to your door. In my eco-appliance kitchen remodel, this has been a lifesaver for quick restocks during busy weeks. As detailed by Loyalty360, this integration boosts same-day delivery options, aligning with modern demands for efficiency. For families embracing sustainable living, it’s a step toward reducing trips and carbon footprints, much like my commitment to exploring plant-based protein options.

5% Gas Rewards on Credit Card: Fuel Savings for Everyday Errands

A highlight of Costco upgrades perks for members amid slowing growth is the enhanced 5% cash back on gas purchases via the Costco Anywhere Visa Card. This perk extends to all gas stations, not just Costco’s, providing real savings amid fluctuating fuel prices. During our family road trips to farmers’ markets, this has cut costs significantly, freeing up budget for fresh ingredients. Upgraded Points notes this addition rewards loyal cardholders, encouraging more use and tying into broader membership value.

upgradedpoints.com

Citi Costco Cards Add 5% Cash-Back on Costco Gas Purchases

Caption: Costco gas station with 5% rewards signage, showcasing a practical aspect of Costco upgrades perks for members amid slowing growth for everyday savings.

Why Costco Is Focusing on Younger Members with These Upgrades

Costco upgrades perks for members amid slowing growth with an eye on attracting millennials and Gen Z, who value convenience and value. CFO Gary Millerchip highlighted acceleration in upgrades among younger demographics, per recent earnings calls. Features like digital perks and flexible hours cater to this group, as I see in my own plant-based transition appealing to health-conscious shoppers. MSN reports this strategy counters slowing growth by boosting engagement and renewals.

The Impact of Membership Fee Increases on Perk Enhancements

While Costco upgrades perks for members amid slowing growth, the recent fee hikes—now $65 for Gold Star and $130 for Executive—fund these improvements. Revenue from fees hit $4.8 billion, up 5%, supporting expansions like more warehouses and digital services. In my family dinners, the Executive perks like 2% rewards justify the cost, especially for bulk buys in recipes such as spicy chipotle salmon tacos and slaw. The Street notes this balance maintains high renewal rates at 90%.

medium.com

Is the Costco Executive Membership Finally Worth It? | by Frankie …

Caption: Costco executive membership perks illustration, detailing rewards that come with Costco upgrades perks for members amid slowing growth.

How These Perks Enhance Wholesome Family Shopping

Costco upgrades perks for members amid slowing growth make sourcing nutritious foods easier, from organic greens for summer salad with honey roasted pistachios to proteins for balanced meals. The Instacart tie-in means less time in-store, more in the kitchen creating. As a nutrition coach, I love how this supports functional living, akin to exploring functional beverage trends for hydration.

Comparing Costco’s Upgrades to Competitors Like Sam’s Club

Amid Costco upgrades perks for members amid slowing growth, how does it stack against rivals? Sam’s Club offers similar delivery perks, but Costco’s gas rewards and hours edge it out for value, per consumer reports from Capital Journal. For families like mine, Costco’s focus on quality wholesomes wins, especially for baking staples in baked butter paneer recipe Epicurious.

Tips for Maximizing Your Costco Membership in 2026

To leverage Costco upgrades perks for members amid slowing growth, upgrade to Executive for extra rewards on purchases like kitchen gadgets. Use the app for deals, and stack with Instacart for seamless shopping. In my routine, this means more time for quick Mediterranean chicken rice bowl high protein 15 minutes meals.

gettyimages.com

367 Inside Of A Costco Store Ahead Of Earnings Stock Photos, High …

Caption: Costco warehouse interior with shoppers, capturing the vibrant atmosphere enhanced by Costco upgrades perks for members amid slowing growth.

The Future of Costco Perks: What to Expect Next

As Costco upgrades perks for members amid slowing growth, look for more digital integrations and sustainability focuses in 2026. With membership at 137 million, innovations like app-exclusive deals could emerge, per AInvest insights. This aligns with my eco-appliance kitchen, emphasizing wholesome, sustainable shopping.

How These Changes Support Sustainable and Wholesome Lifestyles

Costco upgrades perks for members amid slowing growth promote eco-friendly habits, like bulk buying to reduce packaging waste. Pair with my plant-based tips for meals that nourish, linking to embracing a zero-waste lifestyle for fuller living.

Costco upgrades perks for members amid slowing growth not only address business challenges but enrich our daily lives with convenience and value. From extended hours to delivery perks, these enhancements make wholesome family cooking more accessible. As I blend smoothies in my kitchen, I’m excited for how they’ll shape our routines in 2026.

Essentials for Your Costco-Inspired Wholesome Kitchen

Stock up on these favorites to complement your Costco hauls and elevate family meals:

• This vitamix blender – the exact one I use for smooth green smoothies every morning.
• Matcha tea powder – adds a vibrant boost to my energy-focused recipes.
• Creatine supplement – supports my plant-based transition for better workouts.
• Vital proteins collagen – mixes seamlessly into family breakfasts for joint health.
• Ninja air fryer – currently 30% off—run! Perfect for crispy veggies without oil.
• Reusable silicone bags – my go-to for storing Costco bulk buys sustainably.
• Insulated water bottle – keeps drinks cold during shopping trips.
• Bulk nut container set – organizes pistachios and more for easy access.

For more insights, check out biotech innovations in skincare from Byrdie or Harvard Health on nutrition.

P.S. Craving more wholesome recipes? Sign up for my free recipe e-book—it’s packed with family-tested meals to build your collection of nourishing ideas.

Related Posts

• Roasted Sweet Potato Stacks with Chipotle Sauce Recipe
• Summer Salad with Honey Roasted Pistachios
• Spicy Chipotle Salmon Tacos and Slaw
• Baked Butter Paneer Recipe Epicurious
• Quick Mediterranean Chicken Rice Bowl High Protein 15 Minutes
• Embracing a Zero-Waste Lifestyle
• Exploring Plant-Based Protein Options
• Exploring Functional Foods Benefits
• Exploring Functional Beverage Trends

=

[ad_2]

Both Walmart’s Sam’s Club and Costco have done a lot to change consumer perception of private-label, or house, brands. Costco’s Kirkland Signature and Walmart’s Member’s Mark aren’t ’70s- and ’80s-style generic, white-label brands.

Instead, while the products’ manufacturers might not be known, both warehouse clubs have established that their house brands offer both value and quality. That’s why both Costco and Sam’s Club can sell higher-end items like liquor and furniture under the Kirland Signature and Member’s Mark names, respectively. 

Costco (Kirkland Signature)

• Costco itself (via its CFO) reported that “Kirkland Signature merchandise penetration…is about 28% for the year” (excluding gas and other businesses using the Kirkland name). Source: PLMA

Sam’s Club (Member’s Mark)

• Member’s Mark is estimated to account for roughly 30% of Sam’s Club’s sales by dollar value. Source: NBC Connecticut

The numbers vary year to year, but they’re huge for both chains. Costco and Sam’s Club have made their house labels mean something, and that allows both chains to lean into those lower-cost options during tougher economic periods.

Last year, however, Walmart built something that gives it an edge over Costco.

Walmart’s Sam’s Club built a Member’s Mark club

Sam’s Club has created a way for its customers to be part of the Member’s Mark development process, the Member’s Mark Community. It shared some info about the “club” on its website. 

“Member’s Mark Community is an online community for an exclusive set of Sam’s Club members to voice their opinions on all things Sam’s Club related. Members are asked to participate in activities (surveys, chats, discussions) on a variety of topics,” it shared. 

The community gives members a say in what items Sam’s Club will offer under the Member’s Mark brand.

“At Sam’s Club, we have a long history of listening to feedback from our members and putting their needs at the center of everything we do. It’s an integral part of how we develop our Member’s Mark products, and in today’s experience economy, our approach sets us apart from other retailers in ways that deliver real value to our members,” Sam’s Club Chief Merchant Megan Crozier shared in a blog post.  

More Retail Stocks:

• Popular office supply retailer sold after closing 1,000 stores
• T-Mobile plans a harsh change for customers after new CEO starts
• Kohl’s hopes generous offers will bring customers back to stores

The community, she noted, goes beyond traditional focus groups and surveys. 

Member’s Mark Community, Crozier shared, offers “true engagement that will shape the future of retail by creating more personalized experiences for our members. And this collaboration is already happening at scale, with input flowing from 50,000 active members, and we see the opportunity to include all members in the future.”

How the Sam’s Club Member’s Mark community works

Retail TouchPoints shared an example of how Sam’s Club has leveraged the Member’s Mark community.

For example, this season’s Member’s Mark grill benefited from input and product testing by community members. The retailer’s product development team identified avid grillers through a questionnaire and then distributed 20 prototypes to members in the Dallas-Ft. Worth area. Members tested the grills, cooking, filming and reviewing their experiences, and their feedback led to the development of a grill that included adjusted features designed to resonate with members’ needs and preferences.

Costco does not have anything similar to the Member’s Mark Community for its members. 

“The future of customer engagement is participatory as retailers and customers collaborate in commerce to create win-win experiences,” R. “Ray” Wang, CEO at Constellation Research, a Silicon Valley-based research and advisory firm, told Retail Tech Innovation Hub.

He believes that the community gives Sam’s Club a real edge over Costco.

“Sam’s Club is pushing the boundaries of retail in today’s experience economy with customer engagement strategies designed to get to the promises of collaborative commerce,” he added.

Costco’s Kirkland Signature timeline:

• 1995: Costco introduces Kirkland Signature as its exclusive private label, consolidating various in-house brands into a single identity. 
• The name “Kirkland” is chosen to honor the company’s headquarters in Kirkland, Washington.
• 1995: The first Kirkland Signature products are launched, including items like batteries, coffee, and olive oil.
• 2000s: Kirkland Signature expands its product range to include a variety of categories such as clothing, electronics, and household goods.
• 2005: Costco begins co-branding certain Kirkland Signature products with well-known manufacturers to enhance credibility and quality perception.
• 2010s: The Kirkland Signature brand becomes a significant contributor to Costco’s revenue, with estimates suggesting it accounts for approximately one-third of the company’s total sales.
• 2025: Costco celebrates the 30th anniversary of Kirkland Signature, marking three decades of success and growth for the private label.

Costco is the leader for a reason

Sam’s Club only consolidated its private labels under the Member’s Mark name back in 2017. Costco has used the Kirkland brand for 30 years and it has the system down.

Bob Amster, a retail consultant with over 45 years of experience. shared how the private label works for the warehouse club leader in comments to RetailWire. 

Costco must do constant analysis on what sells, attractive price points, then applies undeniable quality to the products and, presto, you have a successful private label brand. The Kirkland brand quality is not by any means diluted just because it is private label. In fact, in many cases I have experienced, the Kirkland brand product is as good or better, than nationally advertised brands. Ironically, private labels are not advertised yet Kirkland is the largest private label brand anywhere at an estimated $86 billion.

Brian Numainville, another member of RetailWire’s Brain Trust, has similar feelings about Costco’s success.

“I think they absolutely nailed it with consolidating everything under one brand name known for solid quality (sometimes even better than the big brands in my own experience!) I also think it is a smart move to keep the selection tight. It makes things simple and gives them more clout when negotiating with suppliers,” he shared.

Sam’s Club Member’s Mark timeline:

• 1998: Sam’s Club introduces Member’s Mark as its private label, aiming to offer members high-quality alternatives to national brands.
• 2017: Sam’s Club consolidates its 20 proprietary brands under the Member’s Mark label, streamlining its private label offerings.
• 2020-2022: The company launches, renovates, and reformulates over 1,200 Member’s Mark items, aligning with Walmart’s sustainability goals.
• 2022: Sam’s Club rebrands Member’s Mark with a new logo and the tagline “Made with Our Members and Planet in Mind,” emphasizing sustainability and quality.
• 2025 (June): Sam’s Club announces plans to eliminate over 40 artificial ingredients, including synthetic dyes and aspartame, from Member’s Mark products by the end of the year.

Source: Supermarket News

Related: Costco quietly pulls the plug on major product line members love

[ad_2]

Most people think of Costco as the warehouse club where you visit, checking its aisles for old favorites and unexpected items. 
It’s rare that anyone thinks of Costco as an online retailer or a place that offers same-day shipping. In reality, over the past few years, the warehouse club chain has built a somewhat robust website.
The Costco website even offers some items through third parties that are not sold in the chain’s warehouses. In addition, there are extended offerings of bulky items like furniture and appliances.
Unless you are a member, you may not realize that Costco also offers same-day delivery through its partnership with Instacart.
And anyone who has used that service may not be aware that prices on those delivered items may be, and usually are, higher than what they’d pay in stores.
That’s actually common for any delivery service. When you order dinner through Uber Eats or DoorDash, you often pay a higher price than you would picking up or dining in.

Costco lowers its Instacart prices

In the case of Costco, however, members may not have expected that, because of the chain’s reputation for having low prices. The retailer, and not Instacart, sets prices for items.

The delivery service has been pushing for chains to offer price parity, or only small markups.

“Earlier this year, Instacart announced that Schnuck Markets, Heritage Grocers Group, and home improvement chain Lowe’s switched to price parity. Walmart Canada lowered its markup, as did Costco on its same-day delivery websites for the U.S. and Canada,” Instacart shared in a report.

Instacart also shared why that’s a good thing.

“Grocery prices continue to be top of mind for consumers, and we know that working with retailers to offer their customers affordable prices is key to helping them drive faster growth and accelerate online grocery adoption. On our platform, retailers that price items at in-store parity consistently grow faster on average than those with markups,” the study showed. 

Costco shared why its prices are higher on Instacart

The warehouse club did acknowledge that Instacart prices are higher in an FAQ on its website.

“Costco’s item prices are marked up higher than your local warehouse, however, the item markup is reduced for Costco members. The order minimum is $35. This pays for the delivery service and to provide competitive pay to all shoppers working on the Instacart platform. Unlike a tip, which can only go to the shopper delivering your order, a markup allows Instacart to pay all shoppers (including those, for example, that also pick ordered items in the warehouse).”

Delivery grocery prices have traditionally been higher

Traditionally Instacart, like Uber Eats, and regional grocery chains have marked up prices. A 2023 study from GoodWater shared how that works:

Instacart has 3 pricing levels:

• Everyday store prices: Prices are the same as in-store
• Prices vary from in-store: Prices could be the same or higher than in-store
• Higher than in-store prices: Prices are higher than in-store

“From our data scraping, we find that 84% of grocery store prices are different from in-store prices, and that they are almost always higher,” GoodWater found. 

Related: 99-year-old retail chain quietly closes over 500 stores

There’s a reason Costco does not offer the exact same prices in store and via Instacart, according to GlobalData Managing Director Neil Saunders.

“The rub is that shopping via third party apps does not give consumers access to the sharp Costco prices found in stores. Ranges can also be more limited, and you don’t get the full in-store experience with tasting and bargain hunting. For these reasons, these partnerships are incremental to, rather than a threat to, traditional memberships,” he told RetailWire. 

Costco, it should be noted, does not require a membership to shop its warehouses via Instacart. It does, however, offer members better prices.

FAQ on how Costco’s deal with Instacart works

• Do I need a Costco membership? No. Non-members can order through Instacart, but members often get better prices when ordering via Costco.com (same-day delivery powered by Instacart).
• Are prices the same as in-store? No. Online prices are typically 10–20% higher than warehouse prices.
• Where do I order?
•  Instacart app/site: No membership required, higher markups. 
• Costco.com (Instacart powered): Membership login, slightly lower prices.
• What about fees?
• $3.99-$7.99 delivery fee (if under $35), plus service fees and tip.  
• Instacart+ members get free delivery on $35+.
• Can I get all Costco products? Selection is limited; fresh groceries and household staples are common, but not all warehouse items are available.
• Do Costco coupons work? No. In-store promotions don’t apply.
• Can I return items? Yes, most can be returned at Costco warehouses.

Related: 70-year-old supermarket chain closing multiple locations

[ad_2]

Two retail behemoths are well positioned for rising inflation.

Are you a Walmart (WMT -1.18%) person or a Costco (COST -1.18%) person?

When it comes to shoppers, the two groups tend to be mutually exclusive, with many Americans swearing by one and swearing off the other.

But for investors, the question is a bit different: They want to know which they should put money into.

And that question is more relevant today than it’s been in a while. Many economists expect President Trump’s tariffs to start pushing the price of groceries — from bananas and coffee to soda and beer — higher in the coming months. The Tax Foundation expects tariffs to impact nearly 75% of U.S. food imports.

If and when prices of groceries rise, both Walmart and Costco are expected to benefit, as many Americans will trade down to retailers that emphasize low prices. Plus, because they’re so large, both retailers have significant supply chain leverage that should allow them to push back on higher prices from suppliers — to an extent, at least.

Image source: Getty Images.

Walmart is quite a bit larger than Costco, with a market cap of $778 billion, versus $441 billion for Costco. Walmart has more than 10,000 stores on four continents and is the world’s largest retailer by sales. Costco is the world’s third-largest retailer; it has a membership model, with roughly 900 locations and 79.6 million paid household members and 37.6 million paid executive memberships. While they sell all kinds of items, Walmart and Costco rank as grocery behemoths.

Costco stock is up roughly 6% this year as of Aug. 21 and 181% over the past five years, while Walmart stock has gained roughly 8% year-to-date and 123% over five years.

Strong inflation era results

Walmart and Costco often do well when inflation pushes prices higher and shoppers look for bargains.

From January 2022 to February 2023, when year-over-year headline inflation ranged from 6% to 9.1%, Walmart kept the increase in grocery prices to 3%, compared to average price increases of 7.5% or more at rivals like Amazon, Kroger, and Target, according to a Reuters analysis. Walmart’s size and buying power help it force suppliers to keep prices lower.

As a result, in its fiscal 2024, ended Jan. 31 of that year, Walmart grew total revenue in constant currency 6% to $648 billion and its adjusted earnings per share 5.7% higher to $6.65. In the 52 weeks following that earnings announcement, Walmart shares climbed 66%.

Costco, on the other hand, makes a large percentage of its profits from membership income — membership fees totaled about 65% of net income in the most recently reported quarter. That business model — along with a reputation for good deals — helps steady the company’s results during an inflation spike. In its fiscal 2023 (ended Sept. 3 of that year), Costco saw U.S. net sales grow 6.7% to almost $238 billion. Membership fees increased 8% that year, to $4.58 billion.

In the 52 weeks after that earnings release, Costco stock rose 63%.

And just recently, in its third quarter of 2025, the retailer reported a 10.4% increase in its membership fee income, to more than $1.2 billion. Last September Costco raised membership fees by $5, to $65 a year, yet it saw no meaningful decline in members after the increase.

Both businesses and their stocks benefit from rising overall prices because they’re able to either keep prices lower than the competition (Walmart), which drives sales, or rely on membership fees (Costco) that drive profits.

What does the future hold?

So which stock should you invest in today in anticipation of rising grocery prices in the months ahead?

Well, stock prices ultimately track earnings growth. And analysts expect Costco to increase earnings per share for the current quarter by 10% (results will be released on Sept. 25).

As for Walmart, the retail behemoth released its second-quarter results this week and they were slightly disappointing. Adjusted earnings per share of $0.68 were lower than the average analyst estimate of $0.73, and that sent the stock 5% lower on Thursday. Revenue, however, came in at $177.4 billion, almost $2 billion higher than estimates.

Thus, the picture is mixed. Rising grocery prices will impact all U.S. retailers, and both Costco and Walmart have a history of thriving when that happens. With the uncertainty of Trump’s tariff policies still high, however, Costco’s membership-driven model may put it in a more advantageous position going forward.

[ad_2]

“I may need to stop by my local Costco this afternoon.”

Lindsey Weedston

Posted on June 30 2025 2:52 pm CDT

Lululemon has filed a lawsuit against Costco, alleging that its Kirkland Signature brand is selling knockoff versions of the athleisure giant’s signature products at a fraction of the price. The suit references viral TikToks with the hashtag #lululemondupes as proof of brand confusion and financial harm. But the backlash online is already painting this legal move as a PR disaster, with dozens of shoppers newly discovering Costco’s cheaper alternatives…thanks to Lululemon.

Featured Video

Lululemon v. Costco

Lululemon filed the lawsuit against Costco in California on June 27. Specifically, the company accused its competitor of ripping off its Scuba hoodies and sweatshirts, Define jackets, and ABC pants.

The accuser included side-by-side images of the products in question in their 49-page filing. Lululemon compared the ABC pants for men, priced at $128, to Kirkland Signature brand pants priced at just $19.90.

“There is even a hashtag ‘LululemonDupes’ on social media platforms such as TikTok that social media influencers use when promoting these copycat products,” the company pointed out.

That point is indeed true. The TikTok hashtag holds 5,211 posts under its belt as of June 30. However, the strong majority of the most popular videos feature “dupes” (short for duplicates) from Amazon rather than Costco.

Still, there are Costco videos out there. User @shopclubcostco posted a video on June 7 showing Danskin bike shorts at Costco and comparing them to Lululemon items but “without the $100 price tag.”

@shopclubcostco @Costco Wholesale has Lululemon align biker short dupes in a 2 pack!!! Only 13.99 online right now for 2 pairs!! By @Danskin #costcofinds #lululemondupe #aligndupe #bikershorts #thebestbikershorts ♬ Typing sound (keyboard) 1 minute(1006555) – LEOPARD

Lululemon has benefited from similar lawsuits in the past. Two years after suing Peloton in 2021, the two companies entered a partnership to sell branded athletic wear. Costco is well known for partnering with other companies and allowing them to sell under the Kirkland Signature brand as long as they meet certain standards.

The athleisure company could clearly use the boost. Its stock price is down 37 percent this year.

“This makes me want to go to Costco”

Lululemon might want to jump on such a partnership opportunity. Otherwise, news of this lawsuit might hurt their profits even more.

On X, where the story spread over the weekend, there were quite a few users who apparently didn’t know about the alleged Costco dupes. Now that they know, they’re eager to make a trip to the closest warehouse.

This makes me want to go to Costco and buy some clothes

Lu Lu should have stayed quiet cus I was saving up to go there https://t.co/9AKRspmFiv

— catblack (@CeyonceLooms) June 30, 2025

“This makes me want to go to Costco and buy some clothes,” said user @CeyonceLooms. “Lu Lu should have stayed quiet cus I was saving up to go there.”

“I may need to stop by my local Costco this afternoon,” wrote @phenom876 in response to a headline.

Even those who aren’t already hopping into their cars largely seem to be on Costco’s side. The big-box store has been a reliably affordable option for millions of Americans for decades and gained strong loyalty as a result. Lululemon, on the other hand, gets accused of letting their quality slip while increasing prices.

“Let me get this right,” said @soultrekkin. “Lululemon is mad at Costco because they’re making similar items at affordable prices for people? GTFOH Lululemon $128 for a pair of leggings and they’re increasing prices on items here soon.”

“Companies are allowed to sell their own brand of clothing (like Kirkland Signature),” @OhHey_ItsRay argued. “Costco isn’t marketing them as Lululemon products, because they aren’t. This is a frivolous suit. I hope $LULU fails spectacularly and that there is a big shake up in leadership after they lose millions of dollars from this epic mistake.”

The internet is chaotic—but we’ll break it down for you in one daily email. Sign up for the Daily Dot’s web_crawlr newsletter here to get the best (and worst) of the internet straight into your inbox.

[ad_2]

Considering Walmart’s  (WMT)  domination in the retail space, it’s probably reasonable to expect that Sam’s Club, its membership warehouse offering, would be able to compete with Costco  (COST) .

However, that’s not actually the case. As of Q1 2025, Costco held 77.7% of the market share for the warehouse club industry, per data from CSIMarket.

Don’t miss the move: Subscribe to TheStreet’s free daily newsletter

Part of Costco’s advantage may be that it was first to the game. It began in 1976 as Price Club, eventually opening the first Costco in 1983 and then merging the two businesses.

Walmart was quick to follow once Costco launched, also starting Sam’s Club in 1983. But Costco’s experience with Price Club gave it eight additional years of opportunity to experiment and innovate, which may be a contributing factor to the company’s success. 

Because of the significant gap between the two, Sam’s Club is constantly under pressure to find ways to compete with Costco and potentially spirit its customers away.

Related: Costco makes a bold move to compete with Amazon

One key way it does that is by undercutting Costco on membership price and running annual specials that make a membership very affordable. Sam’s Club’s current promotion, which runs through June 30, allows new customers to join for $30.

Now Sam’s is trying something new by taking aim at Costco’s famously affordable food court — and it just might make a dent in the warehouse giant’s sales.

Sam’s Club has a deal that Costco doesn’t

In May, Sam’s Club decided to launch an unusual service: pizza delivery.

Much like Costco, Sam’s Club has a food court that serves inexpensive eats like hot dogs, pizza, pretzels, yogurt, and drinks.

A new service the retailer added in May allows members to use the Sam’s Club app to order a Members Mark 16-inch pizza and schedule a delivery window or pay a few extra dollars for express service.

For Plus members, delivery is free when they place an order over $50, while Club members pay $12.

The pizza itself retails for $8.98, and customers can choose from pepperoni, cheese and four-meat options. Costco charges $9.99 for a pizza of the same size.

After a month, Sam’s Club says that the new service is a grand success.

Related: Walmart delivers Amazon some really bad news

“Since launching pizza delivery in late May, we’ve been encouraged by the strong response from members,” said a Sam’s Club statement to FOX Business. 

“Early performance has exceeded expectations, with robust demand, high repeat order rates, and enthusiastic feedback from members seeking affordable, high-quality meals delivered hot and fresh,” it said. 

Sam’s Club makes a clever move in an uncertain economy

Sam’s Club is not only making a move to undercut Costco’s pizza prices, but also taking aim at pizza delivery shops in general, where pies have become more expensive in recent years.

For example, a large pepperoni pizza from Domino’s is $17.49, while the same pizza from Papa John’s is $18.53 including delivery fees.

More on retail:

• Walmart takes a key stace on a highly controversial topic
• Target unveils Amazon-style revival plan to win back customers
• Walmart’s Sam’s Club leans into alarming consumer trend

In an economy where people are pulling back on unnecessary spending and looking for the best deal possible to feed their families, Sam’s has a clear advantage here — and you don’t even have to go to the store to get it.

Costco does offer its own large pizza deal, as mentioned above, but it does not offer any kind of delivery. Instacart can get it for you if you are ordering other things using that service, but naturally that comes with an additional fee, defeating the purpose of getting the cheap pizza deal in the first place.

While this move may not rake market share away from Costco by the fistful, it is a small way through which Sam’s Club stands to gain — and a lot of small moves, when added up, can make quite an impact.

Related: Walmart, Kroger recall dangerous ready-to-eat meals

[ad_2]

Costco (COST) , the largest warehouse club in the U.S., has been gaining a leg up on its competitors as its membership numbers continue to grow rapidly.

During the first quarter of 2025, the number of Costco’s paid household members increased to 78.4 million, up 6.8% compared to last year.

Don’t miss the move: Subscribe to TheStreet’s free daily newsletter

This comes at a time when Costco’s products and deals continue to go viral on social media platforms such as TikTok and Instagram.

Related: Costco quietly plans to offer a convenient service for customers

Costco’s U.S. comparable sales also spiked by 8.3% year-over-year during the quarter. This contributed to its net income of $1.7 billion, which is 2% higher than what it earned during the same quarter a year ago.

Costco even outperformed its competitors by drawing in higher levels of foot traffic during the quarter. While Costco’s foot traffic climbed by 6% year-over-year, Sam’s Club’s only increased by 2.7% and BJ’s spiked by 4%, according to recent data from Placer.ai.

Costco to offer a wild new deal to members

As Costco welcomes new members to its warehouses, it reportedly plans to launch a generous new deal next week that targets members who are frustrated with their current phone plans.

According to a recent report from Costco Insider, Costco’s July 2025 Coupon Book will feature a deal that offers members $450 if they switch to T-Mobile (TMUS) and purchase/activate a new phone on either its Experience More or Experience Beyond plan.

Related: Costco quietly limits customer purchases of a beloved product

Members who switch from AT&T, Verizon, Xfinity, Spectrum, USCellular, Claro, or Liberty Puerto Rico will receive a $200 Costco Shop card and a $250 Virtual Visa prepaid card, equivalent to $450.

Customers can even stack the deal, meaning they can receive up to 12 $200 Costco Shop cards and a maximum of four $250 Visa cards if they add 12 lines to the account. The promotion is valid between June 18 and July 20.

T-Mobile recently suffered major loss after angering customers

Costco’s upcoming deal comes amid an exodus of T-Mobile phone customers after the provider implemented a series of price hikes.

The phone carrier revealed in its first-quarter earnings report for 2025 that the number of customers who cut their phone service increased by 5 basis points year-over-year.

Also, while T-Mobile added 495,000 new postpaid phone customers during the quarter, that number is 6% lower than the amount it welcomed during the same time period last year.

More Retail:

• Costco quietly plans to offer a convenient service for customers
• T-Mobile pulls the plug on generous offer, angering customers
• Kellogg sounds alarm on unexpected shift in customer behavior

During an earnings call in April, T-Mobile CEO Mike Sievert said the recent spike in churn is mainly due to consumers becoming more nervous about the state of the economy.

“So overall, you saw across the industry churn was just on the margin a little elevated, and I think there’s a number of dynamics there,” said Sievert during the call. “That probably has more to do with kind of macro questions than with competition. You know, I think there’s a certain element out there where people are in a time of uncertainty about the future, grabbing what they can afford now. And so you’re seeing [more customer] upgrades and switching.”

Amid this concerning trend, many consumers have been flocking to cable companies to sign up for phone plans.

Spectrum, Comcast, and Altice USA have added 886,000 new phone customers during the first three months of 2025, which is up from the 804,000 it added during the same time period last year, according to a recent report from MoffettNathanson.

Related: T-Mobile CEO has a harsh warning for customers

[ad_2]

“I just want to order online and pick up in my car.”

Nina Hernandez

Posted on June 13 2025 10:00 pm CDT

[ad_2]