Costco witnessed a surge in Millennial and Gen Z household memberships by approximately 2.5 million last year, contributing to a notable decrease in the average age of club members. The trend of younger shoppers joining warehouse clubs like Costco has been on the rise, with CFO Gary Millerchip highlighting that half of the new sign-ups were under 40. This shift has been attributed to factors such as younger generations starting families and moving to the suburbs, as indicated by Placer.ai Head of Analytical Research R.J. Hottovy. A similar trend has been observed at Sam’s Club, with a significant increase in Gen Z membership. Both warehouse clubs continue to appeal to shoppers with their focus on quality items at competitive prices, aligning with the current social attitude that saving money is cool. Furthermore, the shift in perception towards store brands like Kirkland Signature and Member’s Mark has seen these products gaining popularity among consumers. Overall, the growing popularity of warehouse clubs among young shoppers bodes well for retailers like Costco in today’s marketplace.
