Membership at a place like Costco or Sam’s Club can help you stock your kitchen pantry for less, but what if the prices at your warehouse club store keep rising while your paycheck stays the same?
The fact is, no retailer is immune to Inflation, not even a warehouse club. And inflation is definitely up.
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The Bureau of Labor Statistics, reports that the Consumer Price Index (CPI) was up 2.9% in August year over year — with groceries up 2.7%. Meats, poultry, fish and eggs were up a dramatic 5.6%.
No wonder 53% of Americans cited the cost of groceries as a major source of stress in a recent Axios poll. (1) Paychecks are not keeping pace with that 2.9% inflation. The average American worker makes $1,196 a week, or $62,000 a year.
If you’re one of them, you may be reconsidering whether buying in bulk at a warehouse club is the best way to save on groceries and household essentials.
The annual membership fees are the same nationwide — $65 at Costco and $50 at Sam’s Club for a basic membership with upgraded, perk-added memberships available.
But while the memberships cost the same everywhere, the price of goods vary. That will play a role in your decision about whether your membership is worth it.
Here are things to consider as you crunch the numbers.
Is your warehouse club membership still worth it?
If you have a larger household and go through milk, eggs and toilet paper frequently, buying in bulk at a warehouse club makes sense.
For example, if you save $10 a month by purchasing those items at Costco, you can make back your $65 membership fee in 6.5 months. After a year, you would have saved $55 ($120 minus the $65 membership fee), making the membership worthwhile.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
On the other hand, buying in bulk means you’re paying in bulk — with a larger grocery bill.
That could lead to a credit card bill you can’t pay in full, and the interest on your balance negating your savings.
And if you purchase perishable items like food in bulk and don’t use them, they could spoil, meaning you’ve wasted money along with food.
That’s tough to swallow in the era of Trump’s tariffs on imports — many of which land on the shelves at warehouse clubs — are contributing to inflation.
Major retailers like Costco or Sam’s Club can absorb some of the tariff costs to shield customers for a while.
Case in point: A Business Insider reporter followed prices at her local Costco between April and June 2025 and found most things on their grocery list cost the same throughout that period.
But there were some exceptions, like Kirkland Signature lemonade. As reported, that may be because the world’s top lemon producers (India, Mexico and China) were hit with steep tariffs. (2)
Warehouse clubs may have to raise prices on more goods to compensate for the premiums they pay to import them
Alternatives to warehouse club membership
It’s important to look at the alternatives.
Figure out how often you shop at a warehouse club versus other stores, and how much you save per shopping trip based on the items you regularly bring home.
If you have a premium membership at a warehouse club and realize it’s not worth it, you could downgrade to the basic membership program if you haven’t already done so.
- If you realize a warehouse club membership isn’t worth it, here are other ways you can save money on groceries and household essentials.
- Shop at Amazon, Walmart and Target for bulk savings.
- See which items your regular supermarket carries in bulk.
- Use a program like Amazon Subscribe & Save to get a discount on recurring shipments of items you use a lot.
- Go to discount grocers like Aldi that let you save money by purchasing store brands.
- Sign up for a loyalty program at every supermarket you shop at.
- Read each supermarket circular and download digital coupons to your store card.
Finally, you may want to team up with another family or friend to split the bill and the goods whether you’re shopping at a warehouse club or your local bulk store. The more savings, the merrier.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Axios (1); Business Insider (2)
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