Costco Now Has 123 Million Members. Should You Join Them?

As of 2023, Costco membership has risen to an all-time high of 123 million members, spanning an amazing 68.1 million households. The popular warehouse club is active in 14 countries and boasts 852 club locations.

With so many members, it's safe to say that if you aren't one yourself, you probably know someone who is. And given the brand's popularity, chances are good the member you know is a big fan.

Can 123 million members be wrong? Or is Costco really worth joining? The fact is, warehouse clubs -- even Costco -- aren't right for everyone. But they may be a good personal finance move for much more than the 68 million households who have already joined. 

Pallets of potential savings

The foundational appeal of Costco is the potential for savings. Warehouse clubs use quantity and efficiency like tools specifically designed to keep overhead as low as possible. This (along with the annual membership fees) allows them to pass a lot of purchase savings on to their members.

When priced per unit, most of what you buy at Costco will be cheaper than just about anywhere else (with the possible exception of Sam's Club or BJs, the two other major warehouse club chains). And that applies to everything from butter and eggs to electronics and household supplies.

For larger families, the bulk buying has two big pluses: the price savings and the time savings. Basically, if you can buy a lot of goods in bulk, you're not going to need to shop quite as often as when you're buying in smaller quantities.

And it'd be remiss of me to ignore the Kirkland Signature store brand. Costco's worked hard to build its house brand's reputation, and it's paid off. Kirkland Signature items are widely considered to be just as good -- if not better -- than many name brands (likely because the items are often made by the same companies!).

Beware the bloated Costco bulk buys

As much potential as there is to save money with a Costco membership, it's definitely not guaranteed. 

For one thing, there's the membership itself; a basic annual Costco membership costs $60 a year. So you need to get at least that much in savings from shopping with Costco just to break even on the membership cost.

Then there's the fact that most of what Costco sells, it does so in large quantities. Pretty much everything is in bulk packages, meaning you aren't buying a jar of peanut butter -- you're buying 56 ounces of it. 

While bulk sizes are part of how you get such good per-unit prices on things, that low price only stays low if you actually use it all. For a smaller family, the sheer quantity you need to buy from Costco could simply be too much to use up before it goes bad. Food waste = wasted money.

Not for the digitally dependent

Another important thing to keep in mind is convenience. If there isn't a Costco within an easy drive of your home, you're going to need to make dedicated trips to your local club -- however far away that may be. This can limit what types of items you can buy, which also limits how much money you'll save each year.

And if you're thinking about just having things delivered, well, think twice. Costco's online presence isn't great. It does have a moderate selection of items you can buy online to have shipped to you, but it's definitely missing a ton of items. 

Worse than poor selection, Costco charges a lot of money to order online. Each item has its own surcharge above the store price -- and that's before you add the delivery fee if your order is less than $75.

Costco has dedicated fans, but it's not for everyone

It's certainly easy to see why people like Costco. A quality store brand, tons of locations, lots of potential for savings. With all the perks, a Costco membership can definitely be a worthwhile investment for a lot of families. 

A lot -- but not all. If you won't go through the items, aren't near a store, or prefer to shop online, a Costco membership simply won't be worth the extra charge on your credit card.