Costco vs. Kroger: Which Store Is Better for You?

When it comes to grocery shopping, choosing the right store can make a big difference in terms of quality, variety, price, and convenience. Two top contenders in the grocery industry are Costco and Kroger, and many shoppers wonder which one is better for their needs. We compared Costco and Kroger in various categories, so you can make an informed decision based on your priorities and preferences.

Product selection

Both Costco and Kroger offer a wide range of products, from fresh fruits and veggies to meat, dairy, snacks, and household essentials. However, Costco is known for its bulk buys and value packs, which are ideal for families or those who entertain frequently. If you're looking to stock up on non-perishable items such as toilet paper, pasta, or cereal, Costco is likely to have a better price per unit than Kroger.

On the other hand, Kroger has a more diverse selection of brand names, specialty items, and regional products, which may better cater to individual tastes and preferences. Costco only carries about 4,000 SKUs (stock keeping units) compared to the 30,000 found at most supermarkets like Kroger. If you're a foodie or have specific dietary needs (e.g., gluten-free, vegan, kosher), Kroger is more likely to have a wider variety and better quality products for you.

Price

Costco is often said to be cheaper than traditional supermarkets or even wholesale stores, thanks to its low overhead costs and direct partnerships with suppliers. Costco is known for being a wholesale retailer that specializes in bulk items for businesses and families. Costco requires a paid membership to shop, but when it comes to pricing, Costco tends to have lower prices per unit compared to Kroger.

However, this may not always be the case, especially if you don't buy in bulk or don't have a membership. So it is important to shop around and compare prices. Kroger frequently offers discounts, coupons, and markdowns on various products, as well as rewards points and digital offers for members of its loyalty program.

Price comparison

Convenience

When it comes to convenience, both Costco and Kroger have their pros and cons. Costco tends to have larger stores with ample parking, quick checkout, and free samples, making it a popular destination for bulk shoppers and families. However, the long lines and crowded aisles and parking lots may be a hassle for some shoppers. Costco has 586 locations in 46 states.

Kroger, on the other hand, has close to 2,800 stores in 35 states under two dozen banners under its brand. This gives customers the flexibility to choose a location and format that suits their needs and schedule. However, the prices and availability of certain products may vary by location, and online orders may require additional fees or pickups.

Credit cards and rewards

The Kroger Rewards World Elite Mastercard® gives cardholders up to 5% cash back on eligible groceries, 2% cash back in their stores, and 1% cash back on all other purchases. Cardholders can also save an additional $0.25 per gallon of fuel, each time they redeem at least 100 fuel points at their Fuel Centers.

Costco offers members the Costco Anywhere Visa® Card by Citi, which allows cardholders to earn Costco cash rewards anywhere Visa is accepted. Costco members can receive 4% rewards on eligible gas (on the first $7,000 per year and then 1% after), 3% on restaurants and eligible travel, 2% on all other purchases from Costco and Costco.com, and 1% for all other purchases.

In addition to its rewards, Costco's card also offers certain advantages, such as complimentary purchase protection, travel insurance, and no foreign transaction fees.

When choosing between Costco and Kroger, consider various factors, such as your shopping habits, dietary preferences, budget, and location. While both stores offer quality products, affordable prices, and convenient options, Costco is more suited for bulk buyers, while Kroger offers a wider range of brands and products. Ultimately, it's up to you to decide which store aligns with your values and priorities. Both offer great options to help you save money on your grocery bill.