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6 myths about Costco that aren't true, according to members who shop there weekly

Maria Noyen   

6 myths about Costco that aren't true, according to members who shop there weekly
Costco Wholesale.Tim Boyle/Getty Images
  • Costco opened 40 years ago and now has over 100 million members worldwide.
  • That success has been followed by certain myths about the chain and the people who shop there.

Costco opened its first warehouse 40 years ago in Seattle.

The decades since have seen the retailer expand exponentially, and today, there are 871 Costco warehouses worldwide.

But amid the success and growth of Costco, certain myths about the retailer and its over 100 million members have also surfaced. And according to Costco superfans David and Susan Schwartz — who cowrote a book about the chain — not all of them are true.

In an interview with Business Insider, they debunked the biggest myths and misconceptions associated with Costco.

Myth: Costco doesn't sell local brands.

Myth: Costco doesn
Two jars of Rao's sauce are sold for $10.59.      Maria Noyen/Business Insider

According to David and Susan, a popular Costco myth is that the retailer doesn't sell items from local brands. The couple said they've often spoken to people who think only products made by huge manufacturers or Costco's signature brand, Kirkland, are sold in the store.

But, according to the couple, that's not the case. While accompanying BI on a recent tour of Costco's warehouse in Brooklyn, the couple pointed out several products — including Rao's marinara sauce — made by smaller businesses and sold in Costco locations worldwide.

Myth: Costco warehouses don't cater to surrounding populations.

Myth: Costco warehouses don
A Costco Wholesale store in Colchester, Vermont, on November 13, 2023.      Robert Nickelsberg/Getty Images

Costco warehouses generally look the same no matter where you shop, but that isn't the case when it comes to products, David and Susan said.

According to the couple, items sold at Costco, especially those in the grocery aisles, depend massively on the location and the demographic of the surrounding population.

"Regionally, about 40% of the product is different," Susan said.

The couple has visited over 200 Costcos worldwide, and they said they've come across plenty of unique delicacies sold exclusively in certain areas.

"In Alaska, you get reindeer sausage, and in Taiwan, the rotisserie chicken is sold with its head," Susan said as an example. "Each warehouse has only 3,800 items, and it's highly, highly curated."

Susan and David aren't the only ones to notice differences between Costco stores depending on the region.

Business Insider reporters Joey Hadden and Talia Lakritz previously visited locations in Canada and Iceland. They both saw an array of items not sold in the US, such as maple leaf cookies, Hungarian beef sausage, dried fish fillets, and Icelandic yogurt.

Myth: Everything at Costco is super-sized.

Myth: Everything at Costco is super-sized.
Some Costco items are sold in bulkier sizes.      Maria Noyen/Business Insider

Indeed, some Costco products — especially pantry staples like rice and oil — are sold in huge quantities.

But not everything has to be purchased in bulk, David and Susan said.

"People think of Costco as a big-bulk retailer," David said, adding that it's a total misconception.

"Not everything at Costco is super-sized," Susan said in agreement. For example, the pair referenced a jar of avocado-oil mayonnaise that they're huge fans of.

"It's a regular-sized mayonnaise jar. It's a great price, so it's a myth that everything's huge," she added.

Myth: Costco members are always people with large families and houses.

Myth: Costco members are always people with large families and houses.
It's safe to say David and Susan Schwartz are two of Costco's biggest fans.      From "The Joy of Costco," Susan Schwartz

According to David and Susan, those less familiar with Costco often think that members of the wholesaler either have large families, large houses, or both.

But the couple, who shop at Costco weekly and live in a "tiny" 450-square-foot apartment in Manhattan, say they are living proof that isn't the case.

"People have this misconception that you need to have a huge house or a huge home to shop at Costco," Susan said. "It's just not true. We're proof of it."

Myth: Costco constantly changes its store layouts to trick customers into buying more stuff.

Myth: Costco constantly changes its store layouts to trick customers into buying more stuff.
The Costco in Brooklyn is bigger than any Trader Joe's I'd visited.      Maria Noyen/Business Insider

If you've ever shopped at the same Costco more than once, you'll notice that the shelves are constantly changing. New items are rotated in while others are discontinued at the same time that staples are shifted around.

This is what's known as Costco's "treasure hunt" design layout, which can be perceived as a merchandise strategy to make shoppers stay at Costco longer and buy more in the process.

But David and Susan don't think that's why Costco switches things up so often.

"People say, really obnoxiously, it's to trick you into buying stuff. It's not. It's just to keep it interesting and fun," Susan said.

Myth: It's impossible to shop at Costco in under 30 minutes.

Myth: It
Costco is known for its "treasure hunt" layout.      Tang Yanjun/China News Service/VCG via Getty Images

The average size of a Costco warehouse is 147,000 square feet, so the idea of popping in for a quick shop in under 30 minutes sounds impossible — but it isn't.

"To do that, you need to know what you're really looking for. You need to be disciplined," David said.

Although it might be possible to get what you need quickly, the couple said that the approach slightly defeats the purpose of going to Costco in the first place.

"The problem is that you're going to miss really good bargains. You're going to miss special items. You're going to miss a lot of stuff," David said.

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