Costco is known for offering great deals to their customers, but it turns out that customers are actually spending money just by being in the store. According to a joint Instagram post by Morning Brew and Phil Andrews of @maxinomicsmb, shoppers are set to spend around $1.75 per minute from the moment they walk into Costco. Andrews explained that the average person spends about 37 minutes in the store, resulting in a total bill of approximately $64.75. He pointed out that the layout of the store, with food samples strategically placed in the back and no signs indicating where items are located, leads to customers wandering and getting distracted, ultimately adding more items to their cart.
Despite the estimate of 37 minutes, many customers admitted to spending much more time in the store. Commenters shared that they spend up to 1.5-2 hours at Costco, which could result in a bill of up to $210. Andrews compared the dwell time, or the amount of time that people spend wandering around, at Costco, Target, and Walmart, revealing that Costco had the longest dwell time. This could be attributed to the fact that Costco does not offer curbside pickup or delivery, forcing customers to spend time in the store. He also emphasized that customers pay to enter Costco, and every square foot of floor space generates about $1,900 in sales, showing the profitability of the store.
Amid concerns of potential price increases, Andrews reassured viewers that the cost of the soda and hot dog combo at Costco is minimal compared to the time partners spend wandering around the store. Many commenters agreed, sharing their experiences of impulse buying at Costco and opting for services like Instacart to avoid overspending. Despite going to the store for just a few items like milk and eggs, customers often leave with unexpected purchases like kayaks and beach chairs. This phenomena was summed up by a comment that stated, “You don’t tell Costco what you need. You let Costco tell you what you need.”
The treasure hunt aspect of shopping at Costco was highlighted by many individuals in the comments, with one person expressing excitement for the upcoming season where Costco will be filled with great products. The thrill of discovering new items and deals in the store was a common sentiment shared among Costco shoppers. Overall, it is clear that while Costco offers great value and savings on many products, customers often end up spending more than they anticipated due to the store’s layout, product placement, and overall shopping experience.
