Is it cheaper to shop at Costco? Journalist puts claim to the test! — here’s what she found out
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When it comes to grocery shopping, we immediately think of Woolies and Coles. After all, these all-Australia supermarket chains have been in operation for decades.
However, with the penetration of foreign supermarket companies, such as ALDI and Costco to the Australian market, the "duopoly" of the supermarketing industry was challenged, prompting the aforementioned retailers to compete with the foreign companies.
And with competition comes the slashing of prices of some goods.
With that in mind, a number of Australians were curious whether getting your groceries from membership warehouses, such as Costco, would result in a lower grocery bill compared to doing your shopping in conventional retailers.
So, Sydney Morning Herald journalist Jessica Irvine put the hypothesis to the test by doing a "personal analysis" on the prices of some items sold in Costco and compared them with similar products in Woolworths.
Here's what she found out…
Sydney Morning Herald journalist Jessica Irvine tested if it’s cheaper to buy groceries in Costco compared to Woolworths. Credit: Dionne Gain.
Jessica said that she spent $421.60 in total after purchasing fresh food and household items in Costco, labelling the experience as a "big shop" for her.
I'm sure some of you are raising your eyebrows right now upon reading that, but Jessica assured readers that the amount she forked out for this shopping was all for the sake of the experiment so no need to worry, folks! You will not be spending that amount on your regular shop at Costco.
She said: "When I got home, I created an Excel spreadsheet listing everything I bought and began scouring the Woolworths website for comparable prices for comparable quantities."
The journalist said that she "ran two analyses" to compare the prices of the Costco items with the Woolies products, explaining that she first compared the Costco products to their same-brand or equivalent-branded products from Woolworths.
And the result of the first analysis? A saving of a whopping $120.32!
The recorded total at the My Woolworths app showed a bill of $541.92, which was significantly higher compared to Jessica's Costco bill.
In her second analysis, the journalist compared the costs of the Costco items to the Woolworths home brand substitutes.
Jessica wrote; "Woolworths still came out more expensive, but less so, at $488.24. Given I actually dropped $476.60 in total to shop at Costco (including the membership fee) it’s not clear I was that much better off."
For those of you who are curious about Costco's membership process and fees, please visit https://www.costco.com.au/membership.
The journalist also pointed out that there are some considerations to keep in mind when shopping at a membership store.
"But unlike Costco, Woolworths and Coles typically offer a choice of brands plus their ‘homebrand’ alternatives, which are of generally good quality and price," she said.
Jessica also emphasised that there is no guarantee that every item is cheaper in Costco compared to other stores.
She explained: "Costco fresh salmon, at $31.99 per kilogram, cost more than Woolworth’s $27 per kilogram."
"The 1-kilogram tub of salted pretzels I bought because I was sure it would be cheaper at $11.39 actually cost more than if I’d bought five 200 gram bags for $2 each at Woolworths."
"And I forked over $19.99 for a 1.2 kilograms packet of strawberries at Costco, when I could have paid $18.72 for the same amount at Woolworths. Importantly, I could also have just bought a smaller punnet."
The journalist said that while purchasing groceries from Costco might be cheaper compared to Woolworths, there were some caveats that you should keep in mind. Credit: Getty Images.
She also pointed out that buying in bulk is more common at Costco compared to other retailers, so it might not be a good idea to do your grocery shopping there if you're a single person or shopping for a small household.
She said: "Bottom line, I’d say Costco is great for stocking up on long-life shelf items in bulk and there are definitely savings to be had on fruit and vegetables for large families who can buy in bulk and be sure not to waste it before it goes off."
How about you? Have you tried shopping at Costco? For those who are curious to see what items you can purchase at this membership warehouse, you might want to check out this video:
Credit: YouTube/Rosh&Stace
However, with the penetration of foreign supermarket companies, such as ALDI and Costco to the Australian market, the "duopoly" of the supermarketing industry was challenged, prompting the aforementioned retailers to compete with the foreign companies.
And with competition comes the slashing of prices of some goods.
With that in mind, a number of Australians were curious whether getting your groceries from membership warehouses, such as Costco, would result in a lower grocery bill compared to doing your shopping in conventional retailers.
So, Sydney Morning Herald journalist Jessica Irvine put the hypothesis to the test by doing a "personal analysis" on the prices of some items sold in Costco and compared them with similar products in Woolworths.
Here's what she found out…
Sydney Morning Herald journalist Jessica Irvine tested if it’s cheaper to buy groceries in Costco compared to Woolworths. Credit: Dionne Gain.
Jessica said that she spent $421.60 in total after purchasing fresh food and household items in Costco, labelling the experience as a "big shop" for her.
I'm sure some of you are raising your eyebrows right now upon reading that, but Jessica assured readers that the amount she forked out for this shopping was all for the sake of the experiment so no need to worry, folks! You will not be spending that amount on your regular shop at Costco.
She said: "When I got home, I created an Excel spreadsheet listing everything I bought and began scouring the Woolworths website for comparable prices for comparable quantities."
The journalist said that she "ran two analyses" to compare the prices of the Costco items with the Woolies products, explaining that she first compared the Costco products to their same-brand or equivalent-branded products from Woolworths.
And the result of the first analysis? A saving of a whopping $120.32!
The recorded total at the My Woolworths app showed a bill of $541.92, which was significantly higher compared to Jessica's Costco bill.
In her second analysis, the journalist compared the costs of the Costco items to the Woolworths home brand substitutes.
Jessica wrote; "Woolworths still came out more expensive, but less so, at $488.24. Given I actually dropped $476.60 in total to shop at Costco (including the membership fee) it’s not clear I was that much better off."
For those of you who are curious about Costco's membership process and fees, please visit https://www.costco.com.au/membership.
The journalist also pointed out that there are some considerations to keep in mind when shopping at a membership store.
"But unlike Costco, Woolworths and Coles typically offer a choice of brands plus their ‘homebrand’ alternatives, which are of generally good quality and price," she said.
Jessica also emphasised that there is no guarantee that every item is cheaper in Costco compared to other stores.
She explained: "Costco fresh salmon, at $31.99 per kilogram, cost more than Woolworth’s $27 per kilogram."
"The 1-kilogram tub of salted pretzels I bought because I was sure it would be cheaper at $11.39 actually cost more than if I’d bought five 200 gram bags for $2 each at Woolworths."
"And I forked over $19.99 for a 1.2 kilograms packet of strawberries at Costco, when I could have paid $18.72 for the same amount at Woolworths. Importantly, I could also have just bought a smaller punnet."
The journalist said that while purchasing groceries from Costco might be cheaper compared to Woolworths, there were some caveats that you should keep in mind. Credit: Getty Images.
She also pointed out that buying in bulk is more common at Costco compared to other retailers, so it might not be a good idea to do your grocery shopping there if you're a single person or shopping for a small household.
She said: "Bottom line, I’d say Costco is great for stocking up on long-life shelf items in bulk and there are definitely savings to be had on fruit and vegetables for large families who can buy in bulk and be sure not to waste it before it goes off."
How about you? Have you tried shopping at Costco? For those who are curious to see what items you can purchase at this membership warehouse, you might want to check out this video:
Credit: YouTube/Rosh&Stace
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