Where older generations such as members of Gen X or even baby boomers stick with flying solo with memberships to wholesale giants such as Costco or Sam’s Club, younger adults know it may take a village to save money on everything on your shopping list .
Quick Take: How Gen Z Saves Money Shopping at Costco and Sam’s Club
In recent years, Costco and Sam’s Club have seen a noticeable shift in their customer demographics. Gen Z is playing an important role as some of these major retailers and grocers’ most influential shoppers. Here are some key takeaways about why, how and what young adults are buying at Costco and Sam’s Club:
Membership for people aged 27 and under has increased by over 60% for Sam’s Club in the last two years.
Gen Zers seem to love a good deal and gravitate more toward lower per-unit food costs than previous generations.
Items bought in bulk at Costco or Sam’s Club are often split up amongst roommates, friends or family members. This specifically works well for non-perishable items like toilet paper or crates of canned goods.
Though food cost inflation has slightly ebbed, you are still likely to spend over 11% of your income on what you eat.
Be aware that splitting memberships is not exactly street legal as Costco and Sam’s Club limit members to two guests per visit and even do ID checks, but this isn’t to say you can’t work off a master list and have others Venmo you later.
As Gen Z enters adulthood at a time of economic volatility and future uncertainty, it’s no wonder that they prioritize saving money but also preserving mental health. The last few years have put many of the younger generation’s finances and credit cards to work, so now they are turning the tables and making some systems work for them. Gen Z is being strategic about their shopping, and here’s how you can follow suit.
1. Split the Cost of Membership
Though you can’t simply go to the membership desk of Sam’s Club or Costco and request a split membership there are a few workarounds you can try. The person on the membership does have to be present with shopping, but that doesn’t mean the cost can’t be divvied up retroactively.
As Sam’s Club memberships can range from $50 to $110 annually, and Costco memberships range from $60 to $120, splitting the bill can be handy. For example, if you live with two roommates you could split the basic Costco membership three ways and it only costs you $20 a year which is justified by the amount of savings you will rake in.
2. Focus on the Price Per Unit
Despite their smaller household sizes, Gen Z understands the financial benefits of bulk buying. They often team up with roommates or friends to share bulk purchases, reducing costs while ensuring they get more for their money.
For example, if you buy a 2-pack of Kirkland Signature Organic Peanut Butter at Costco for $12.99 this comes to $0.23 per ounce. Now, if you and a friend each take one of the 28-ounce jars, you pay about $0.12 per ounce.
This communal approach to shopping is both practical and economical for your space and wallet. Whether it’s vats of olive oil, diapers, meats or pet supplies ultimately sharing equals caring about how much money you spend.
3. The Quality of Quantity
While previous generations might have originated buying quantity, Gen Z also looks for a balance of value and quality when bulk shopping. They are willing to spend a bit more on products that offer better longevity and performance. This is evident in their preference for high-quality electronics, durable clothing, and premium food items available at these wholesale clubs.
4. Leverage Membership Benefits
Gen Z shoppers are keenly aware of the perks that come with Costco and Sam’s Club memberships. Beyond just bulk buying, they take advantage of exclusive discounts, cash-back rewards, and member-only events. This strategic use of membership benefits maximizes their savings and enhances their overall shopping experience.
5. Prioritize Sustainability
Sustainability is a major concern for Gen Z as climate change has greater repercussions for them than for boomers. This might be why the younger generation prefers brands that align with their values, including eco-friendly practices and ethical sourcing.
Costco and Sam’s Club have responded by offering more sustainable products, such as organic foods and eco-friendly household items, appealing to this conscientious consumer base. Paying more upfront once is better than paying in perpetuity down the line.
6. Get Influenced by Social Media
Gen Z loves discovering new and unique items that stand out. Both Costco and Sam’s Club took the hint and have expanded their product lines to include trendy and exclusive items, from international snacks to the latest tech gadgets. This focus on variety and novelty keeps young shoppers engaged and coming back for more.
As one of the most active generations on social media, Gen Z also knows that interacting with brands and fellow consumers online can be a gateway to not only saving money but also making money online. You can follow Costco and Sam’s Club for updates on sales, new products, and special promotions when shopping. However, if you build a following brands may seek you out for representation or affiliate marketing.
7. Utilize In-Store vs. Online Shopping Options
Flexibility is key for Gen Z, who are adept at blending in-store and online shopping. They might browse in-store for a tactile experience but finalize their purchase online to take advantage of additional savings or convenience. Costco and Sam’s Club cater to this hybrid shopping model with robust e-commerce platforms and efficient delivery options.
Gen Z is the first generation to grow up with the internet, and they leverage technology to enhance their shopping experience. They use apps, social media, and websites to research products, compare prices, and read reviews before making a purchase. This digital-first approach ensures they get the best deals and make informed decisions.
Final Take To GO
The bottom line is that the Gen Z invasion of Costco and Sam’s Club has brought a fresh perspective to wholesale and bulk shopping, emphasizing a blend of digital savviness, value-consciousness and cost-effective considerations. By understanding and adopting these strategic shopping lessons, you can enhance their buying experience. It turns out that saving money is better as a communal endeavor.
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