As the economy struggles and many Americans look for ways to save money, Costco has proven resilient. The network has continued to grow its membership and retain nearly 90% of its members worldwide.
That shift may signal a broader shift in how middle-class shoppers spend.
“Costco’s jump in March 2026 sales isn’t just because of cheap hot dogs. It’s proof that the middle class is moving away from the ‘convenience’ of the corner store and toward saving at the grocery store,” RTMNexus CEO and TheStreet advisor Dominick Miserandino shared with TheStreet.
“At the end of the second quarter, we had 40.4 million paid executive memberships, up 9.5% from last year. We ended the quarter with a total of 82.1 million paid members, up 4.8% from last year, and 147.2 million cardholders, up 4.7% year over year,” Chief Financial Officer Gary Millerchip said during the warehouse club’s second-quarter earnings conference call.
He also shared the company’s retention rate.
“In terms of renewal rates, at the end of the second quarter, our renewal rate in the US and Canada was 92.1%, down 10 basis points from last quarter; and the global rate was 89.7%, unchanged from last quarter,” he added.
These figures come despite the company increasing its membership fees in September 2024 from $5 to $65 for Gold membership and from $10 to $130 for an Executive membership. However, the increase may have helped the brand.
“Over the past two years, Costco has taken several actions that threatened to disrupt its famously loyal customer base, including increasing membership dues in September 2024 and restricting food court access to members only. But visitation data suggests that rather than deterring shoppers, these changes have supported increased participation and a growing customer base,” according to Placer.ai.
Placer.ai data shows that the membership price increase may have had an unintended impact.
“By increasing the ‘cost of commitment,’ Costco may be discouraging casual or opportunistic users, while deepening commitment among shoppers who do the math and buy more frequently to justify the fee,” the data firm wrote.
Costco has continued to see customers spend more money when they visit its warehouse club.
“Globally, the average transaction increased 7.8%, including the impacts of gas inflation and the exchange rate. Excluding gas inflation and the exchange rate, the average transaction increased 4.6%,” said Director of Financial Planning and Investor Relations Andrew Yoon in prepared comments the chain published about its March sales.
Related: Costco History: Company Timeline and Facts
He also shared which categories were growing the most.
“Food and sundries posted positive figures in the low to mid-single digits. The best-performing departments included food, candy and sundries. Fresh foods rose in the mid- to high-single digits. The best-performing departments included bakery and meat,” he added.
The food wasn’t the chain’s only winner.
“Non-food products posted mid- to high-single-digit positive numbers. Top-performing departments included jewelry, corporate, and hardware. Ancillary business sales increased in the mid-20s. Pharmacy, gas, and food court were the best performers. Gas rose in the mid-to-low 20s, driven by year-over-year price-per-gallon changes as well as an acceleration in volume growth,” he shared.
The chain shared its sales for the year in a filing with the SEC.
Net sales for the first 31 weeks were $173.26 billion, an increase of 9.1 percent from $158.87 billion last year.
Costco has seen higher gasoline sales volumes amid rising fuel prices, Chief Financial Officer Gary Millerchip said during the chain’s second-quarter earnings conference call.
Anecdotally, several Costco locations in South Florida see steady traffic at gas stations, particularly during peak hours, with lines frequently forming at the pumps.
Zacks analysts grouped Costco and Walmart together to explain why they are both doing well in a challenging economy.
“What makes WMT and COST comparable is that both companies are winning from a similar playbook: low prices, strong private label offerings, efficient supply chains, and growing digital capabilities. Both also use membership-related revenue to deepen loyalty and support profitability,” Zacks shared.
It’s a timely comparison because both retailers are navigating the same retail environment of cautious but resilient consumers, moderate inflation and growing demand for convenience items.
Analysts noted that Costco’s membership fees create a stable, high-margin revenue stream.
“This recurring revenue gives Costco the flexibility to maintain low merchandise margins, strengthen its value proposition and reinforce long-term customer loyalty in a highly competitive retail environment,” the company added.
GlobalData CEO Neil Saunders explained Costco’s simple proposition to members on RetailWire.
“Costco’s business is based on the principle that members pay a fee to access great value. Because Costco primarily makes its profits from those fees, all actions are designed to protect renewals,” he said.
His Brain Trust colleague WhyteSpyder, vice president of partnerships, Scott Benedict, backed his opinion.
“The goal is not to maximize margin on each item or category, but rather to offer the lowest possible cost structure to the member and earn the majority of profits through membership growth and renewal,” he wrote.
Related: After bankruptcy, Hooters closes restaurants and struggles to survive
This story was originally published by TheStreet on April 14, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.