Costco feeling cramped lately? You're not alone — here's why foot traffic is up despite the higher membership prices and stricter rules

"Costco has centered its in-store experience on meeting shoppers' needs, which has increased loyalty and attracted new, younger members," Lafontaine told Moneywise.

Membership grows as Americans look for relief

Costco's member growth comes as many Americans look for ways to cut costs. The all-item Consumer Price Index (CPI) increased 1% in March (6), and is up 3.3% from the previous year. Meanwhile, food prices also increased in March, although slightly, up 0.1% from February, but are now 2.7% higher than last year.

When Consumer Reports recently investigated which major retailers offered consumers the best value on groceries, as compared to the national average, Walmart and Costco came out on top, at 21.4% less (7). That savings may help explain why membership is up, despite the program costing more now. In September 2024, the warehouse club increased (8) Gold membership prices from $60 to $65, while the Executive membership tier went up from $120 to $130.

As The Street reported (9), during the retailer's recent Q2 earnings call, Costco CFO Gary Millerchip reported that executive memberships were up 9.5% from last year, with a total of 40.4 million members, while total membership had reached 82.1 million, a 4.8% increase from Q2 2025.

"By raising the 'cost of commitment,'" Placer.ai (10) analyst Lila Margalit writes, "Costco may be discouraging casual or opportunistic users while deepening engagement among shoppers who do the math and shop more frequently to justify the fee."

Gas discounts can't be discounted

It's not just food on which consumers are looking to save these days. The national average gas price in the US just increased 25 cents a gallon for the second straight week, now sitting at $4.54, according to AAA (11). And, you may have guessed, Costco members can also find some of the best deals there, too.

MarketWatch, with data from the Oil Price Information Service, recently found the cheapest gas prices at warehouse club pumps — with Costco offering the lowest, 34 cents less than the national average (as of mid-April) (12).

During the recent earnings call, Millerchip said Costco has in fact seen higher gas sale volumes amid rising prices, according to The Street (13), with the news outlet reporting lines are now common at Costco pumps, particularly around peak shopping hours. The company is also reported to be venturing into stand-alone gas stations, the first of which will open in Mission Viejo, California, later this year (14).

With the potential to save more than 30 cents a gallon on gas, and more than 20% on groceries, waiting a little longer in line may be well worth it for Costco members — and may draw more consumers to become members.

Article Sources

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Placer.ai (1),(5),(10); NPR (2); Costco Investor Relations (3),(8); The Street (4),(9),(13); USDA Economic Research Service (6); Consumer Reports (7); AAA (11); MarketWatch (12); C-Store Dive (14)