Costco tops grocery list for higher-income Americans, survey finds

According to a recent survey, Costco was the grocery retailer where the largest share of high-income Americans reported doing most of their grocery shopping. YouGov poll.

11 percent of respondents who earn at least $150,000 a year said Costco is their main grocery store. 14 percent chose “other,” followed by Kroger at 10% and Walmart Supercenter at 8%.

The warehouse retailer, known for its bulk goods and discounted prices, ranked high despite requiring shoppers to pay an annual membership fee.

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YouGov defines high-income households as those earning at least $150,000 per year, or more than 200% of the U.S. median household income. High-income Americans make up 10% of the population, according to YouGov.

Just over half (51%) of high-income households report spending more than $150 per week on groceries, compared to 28% of middle- and low-income households.

Walmart Supercenter was the most popular grocery store among middle- and lower-income Americans, with 20% of survey respondents calling it a supermarket. Five percent of survey respondents reported Costco as their preferred grocery store.

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Walmart took second place, with 12% of middle- and low-income consumers going there for groceries. Kroger and “other” came in third place, with 10% of respondents choosing each.

“Although the hype says that these wealthy customers will go to Erewhons and Whole Foods for the World, this is not necessarily the case.”

Phil Lempert, a food industry analyst based in Santa Monica, California, told Fox News Digital that the findings are not surprising.

“Wealthy households are generally larger households,” he said. “So this fits perfectly with Costco’s larger size model. Plus, wealthier people shop more often, and what they want is value. One of the reasons they have more money is because they’re frugal.”

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Costco’s bulk sizes and low prices naturally appeal to larger households looking to increase their grocery budget, Lempert said.

“While the hype says these wealthy shoppers will go to Erewhons and Whole Foods for the World, that’s not necessarily the case,” Lempert said.

Kroger was another supermarket chain that high-income Americans listed as their favorite store to purchase groceries. (Melissa Phillip/Houston Chronicle via Getty Images)

Costco memberships range from $65 to $130 per year, according to the website. Lempert said he thinks it’s not so prohibitive that it would deter middle- and lower-income Americans, and that it’s worth the savings it brings.

Lempert said he was surprised by Kroger’s strong performance among affluent shoppers, but noted that consumers mostly shop where they live. Costco stores are concentrated in larger metropolitan and suburban markets.

With higher gas prices, shoppers are less likely to drive longer distances in hopes of saving money on groceries, Lempert said.

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“People are worried about what the future will be like,” he said. “And when we’re nervous, we’re more frugal. We have to be smarter consumers than ever these days.”

To save money on groceries, Lempert offered a few tips. “No. 1, always shop with a list,” she said.

Costco is known for its warehouse environment that sells bulk groceries at discounted prices. (Gabriel Bouys/AFP via Getty Image)

The U.S. Department of Agriculture (USDA) sets standards for certain products, such as cheddar cheese. Cheddar cheese sold in a specialty cheese case generally meets the same USDA standards as cheese in the dairy aisle, but can cost 20% to 30% more, Lempert said.

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Lempert said seafood displayed at the counter is often pre-frozen and thawed, while similar frozen items may cost less.

Lempert said the best thing to do is order groceries online and pick them up yourself.

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Strategic shopping by buying in bulk, comparing unit prices or ordering groceries online can help consumers offset rising food costs, he said.