When you think of Costco, a few things probably come to mind:

  • Oversized shopping carts
  • Massive warehouse club aisles
  • Bulk products that often require some serious muscle to lift off the shelves
  • An amazing food court loaded with inexpensive treats

But when most consumers think about Costco, they imagine themselves saving money on everyday items and essentials. It’s those savings that keep shoppers motivated to continue renewing their memberships, despite the fact that there are plenty of stores you can walk into without having to fork over a fee.

But the truth is that while Costco may have once billed itself as a savings destination, budget items aren’t the only products you’ll find. 

If you walk around your local Costco warehouse or browse online, you’ll probably come across a host of high-end items. And given Costco’s reputation as the place to buy eggs on the cheap, some of Costco’s most expensive grocery items may surprise you.

Costco’s priciest grocery offerings

Through the years, Costco has sold some pretty pricey food items, including:

  • A 12-lb boneless Japanese Wagyu ribeye roast for about $1,100
  • A crate of six Pekin ducks for $219.99
  • A whole 72-lb wheel of Parmigiano-Reggiano cheese for about $950

And these are just a few examples of many.

Dollar Tree courts bargain shoppers but has some. higher priced items, too.

Image source: China News Service/VCG via Getty Images

Costco isn’t the only retailer to expand into more expensive inventory

Given Costco’s wide reach, it makes sense for the company to offer customers an assortment of products across various price points. 

The reality is that Costco isn’t just a destination for budget-conscious shoppers. 

Related: Costco’s aggressive new tactic upsets members

Higher earners tend to enjoy saving money just as much as those with smaller paychecks. Only higher earners also tend to have more leeway with what they can spend. So it makes sense for Costco to cater to shoppers who may want to save money on milk but also buy caviar at a slightly less expensive price point. 

In fact, Costco has long been remarkably in tune with its customer base. 

“Most members are average-income earners nationally, but we also have affluent members with two times the average income. That gives us the ability to do remarkable things,” said Hamilton “Tony” James, Chairman of the Board of Directors for Costco, in an interview with Chief Executive magazine.

“Since the beginning, we’ve always known we could move anything in volume if the quality was good and the price was great—Rolex watches, Dom Perignon, 10-karat diamonds.”

Even though the typical Costco customer may not be shopping for luxury items, clearly, there’s enough demand to warrant bringing inventory of that nature into the company’s stores.

Dollar Tree copies Costco by catering to higher-income customers

Like Costco, Dollar Tree is often associated with savings – only to a much larger degree. And it used to be that Dollar Tree catered to a specific type of customer – people with very limited budgets. 

But just as Costco has increasingly brought in inventory for higher-earning customers, so too is Dollar Tree taking a similar approach. 

Related: Dollar Tree CEO offers customers a pricing promise

Part of the reason is that even higher-income consumers have become more budget-conscious since the pandemic. Inflation has been eating away at just about everybody’s paycheck. 

It’s not surprising, then, that these days, more than 10% of people earning $100,000 or more shop at Dollar Tree, according to CBS News, citing findings from GlobalData Retail. That’s up from 5.6% in 2021.

Dollar Tree, in response, is doing its best to bring in higher-priced inventory the same way Costco has. And the strategy seems to be serving the company well. 

“The customer response has been incredibly positive to multi-price…We’re seeing more trips from the customer in terms of our typical customer, which means they’re really embracing that treasure hunt of what they’ll find on the next visit,” said Dollar Tree CEO Michael Creedon during the company’s Q3 2024 earnings call.

Creedon’s “treasure hunt” mention is actually pretty funny, considering that Costco’s executive team commonly refers to the warehouse club shopping experience as a treasure hunt. 

In fact, the company’s executives often like to joke about members who come in with a $75 shopping list and leave with a $300 cart.

That’s highly unlikely to happen at Dollar Tree. But the fact that Costco has been so successful with higher-priced items may be driving Dollar Tree to follow its lead. This means that in the coming years, we may see Dollar Tree introduce products at an even higher price point in an attempt to cater to a wider range of budgets. 

Maurie Backman owns shares of Costco.

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