9 Things You Should Stop Buying At Costco To Save Money

Since Costco first opened in Seattle in 1983, its unique membership-only warehouse club model has revolutionized the shopping experience. By charging an annual fee and capping markups at around 14 to 15%, Costco employs a high-volume, low-margin strategy to deliver low prices consistently. To keep costs low, Costco limits the products it carries and stacks them on pallets in bare-bones warehouses. Because Costco orders huge quantities, it gets lower prices from suppliers than smaller stores. This strategy led Costco to become the first company ever to grow from zero to $3 billion in sales in less than six years.

Over 40 years later, Costco, as of June 2025, has grown to 905 warehouses worldwide, with more than 136 million households globally holding a Costco membership. Over 90% renew their membership each year, showing just how loyal Costco customers are. The store carries approximately 4,000 products, including its Kirkland brand, which is far fewer than the 30,000 found at most supermarkets. Costco also has a generous no-questions-asked return policy on most products, and employees are paid well, which tends to result in longer tenure, making the service more friendly. Plus, you can buy gas, pick up prescriptions, and book travel all in one trip.

As a result, Numerator found that the average shopper spends close to $100 per trip, compared to just $50, half that amount, at Walmart. Despite these benefits, not everything Costco offers is the best deal. Large bulk items can go bad before you use them. The annual membership fee, which starts at $65, adds to your total cost, and some products are more expensive at Costco than at other stores. Here are the products you should think twice about before adding to your cart.

Costco's bulk discounts can feel too good to pass up. However, Americans throw away nearly 60 million tons of food each year — approximately one-third of everything we purchase. That's roughly 325 pounds per person, or $218 billion worth of food (about 130 billion meals). A typical family of four ends up tossing $1,500 in food annually. This not only includes the food itself but also the resources used to produce it, such as water, energy, land, and labor.

The main culprit for wasting so much food is that shoppers buy more food than they need. Many items at Costco are only sold in bulk quantities, meaning you buy a much larger amount than you need. For example, instead of two cans of tomatoes, you might have to buy eight. Lower per-unit prices make it easy to justify loading up, even when your freezer or pantry can't handle the overflow. On top of that, people often overestimate how much they'll actually eat, so they buy large quantities that frequently go bad. This ultimately negates any potential cost savings, resulting in both financial and environmental costs.

Think of that giant 5-pound bag of shredded cheese you won't finish before it molds, or the multi-pack of yogurt cups you don't have fridge space to eat. Wasting even a small portion of a bulk purchase erases any per-unit savings. Before grabbing the jumbo size, ask yourself if you have the appetite, storage, and meal plan to use it all before it goes bad.

Depending on location, Costco often sells fuel 5 to 25 cents per gallon under local prices. The typical savings of 20 cents works out to $3 on a 15-gallon fill-up. That sounds appealing, but when you factor in membership costs, time, and detours, it quickly loses its appeal. The $65 annual membership means you must buy 325 gallons a year at a 20-cent discount to break even, which is equivalent to around twenty-two 15-gallon fill-ups, nearly two per month. Most households don't meet that mark.

Waiting in line also chips away at your savings. The average wait in line at Costco's pumps is 30 minutes, according to Kiplinger. If you value your time at $25 per hour, idling for half an hour costs you $12.50 per visit. Compare that to the $3.00 you save at the pump, and you're already $9.50 underwater each time you wait in line. Idling also burns between 0.2 and 0.5 gallons per hour, adding another $0.32 to $0.80 per half-hour in fuel costs, in addition to mechanical wear and tear. This doesn't include the environmental costs either.

Driving out of your way to fill up your tank at your closest Costco adds another hidden expense. If Costco is just three miles farther than your usual station, a 6-mile round trip burns about 0.24 gallons of fuel in a 25-mpg vehicle, which is roughly $0.77 at $3.19 per gallon (as of September 1, 2025). That further erodes your per-trip savings, turning your $3.00 advantage into a net loss approaching $10.90 when you include time, idling, and detour costs. Unless you can avoid long lines and already shop at Costco, sticking with a conveniently located station may be the smarter move.

Buying milk in bulk at Costco can backfire if your household doesn't drink it fast enough. Milk typically stays fresh for up to  seven days after the sell-by date if unopened and three to seven days after opening. Discount grocers routinely undercut warehouse-club prices on dairy by a wide margin. Costco's gallon jugs of milk, whole, 2%, skim, and organic, may have lower per-ounce prices, but the savings can evaporate if your family can't finish two gallons in a week. However, discount grocers like Aldi, Lidl, and regional supermarkets often run weekly sales or loyalty-member deals that undercut that rate.

In a recent price check, Aldi's half-gallon of whole milk rang up at $1.52 and Lidl's at $1.55. Even Walmart's Great Value half-gallon hovered around $1.54. Compare that to Costco's Kirkland gallon jugs, which run $3.65 to $3.89 ($1.83 to $1.95 for half-gallon). In addition to being cheaper, they are less likely to spoil since they come in smaller quantities. If you're looking to save, your local discount supermarket may offer the same or lower price, especially with coupons or loyalty points that effectively lower per-unit costs beyond what Costco's jumbo jugs deliver.

While Costco may be a great way to save money if your household goes through milk quickly, you also need to ensure you have enough storage space in your fridge. Milk takes up a considerable amount of space, so it's essential to plan ahead. If your household consumes only a few cups at breakfast, Costco's large milk bottles increase the risk of spoilage, which offsets any potential cost savings from buying milk in bulk.

Costco's massive bins of strawberries, blueberries, and multi-pound bags of greens deliver low prices per pound—but fresh fruits and vegetables are the most wasted food categories in the US, primarily due to their relatively short shelf life. Americans waste 46% of fruits and vegetables since they spoil before they can be eaten, compared to 35% of seafood, 21% of meat, and 17% of dairy products. Approximately 43% of food wasted in America comes from households, where fruits and vegetables wilt, milk spoils, and leftovers are often left in the back of the fridge until they are discarded.

Costco's reputation for rock-bottom bulk prices doesn't always hold up when you crunch the numbers. Take bananas, for example, Costco charges $0.83 per pound (in mandatory three-pound bunches), compared with Aldi's $0.53 per pound. Costco's one-pound bag of spinach costs $5.99, while Aldi's eight-ounce pack is just $1.99 ($3.98/lb). Costco's bulk sizes, higher per-unit costs on some items, and the difficulty of using everything before it spoils mean that Aldi, and even your local grocer's weekly specials, can outperform Costco's warehouse deals on many produce items.

Unless you're feeding a crowd, those giant fruit and multi-pound vegetable packs will turn to mush before you finish them. Neighborhood farmers' markets and community-supported agriculture (CSA) boxes, which provide consumers with a direct subscription to a local farm's seasonal produce and goods, let you purchase only what you need—often at comparable per-pound rates. Grocery stores frequently offer produce deals which provide similar savings without forcing shoppers to buy a couple of weeks' worth of strawberries in a one- or two-person household.

When it comes to stocking up on drinks, local discount grocery stores like Aldi can often outpace Costco in terms of price per ounce. A standard container of Kirkland Signature coffee at Costco costs $21.99 for 43.5 ounces (about $0.50/oz), whereas Aldi's 30.5-ounce bag of store‐brand coffee rings in at $9.99 (just $0.32/oz). Coca-Cola fans pay $0.85 per 12-ounce can at Costco versus $0.66 at Aldi. Juice deals swing heavily toward Aldi, too. Costco offers two 96-ounce bottles for $9.49 (approximately $ 0.10/oz), but Aldi's 64-ounce jug is only $1.99 (roughly $0.03/oz).

These differences matter if you regularly brew large pots of coffee, entertain guests, or pack lunches for a family. Costco's massive cases and multi-pack bottles require a considerable amount of space to store, great if you drink gallons of juice or dozens of sodas every week. However, the smaller package sizes at local markets let you test new flavors, swap between juice brands, or switch coffee roasts without leftover waste, and make them ideal for small spaces.

Costco still offers convenience in fewer trips. However, for most households, the lower per-unit cost and flexible pack sizes at stores like Aldi deliver a better balance of savings, variety, and freshness—especially on items like juice and soda, where brand options, promotions, and loyalty points change weekly.

In a comparison across five staple proteins —ground beef, chicken breasts, chicken thighs, bacon, and shrimp—Aldi holds the price advantage every time. Ground beef runs $6.99 per pound at Costco but $6.89 at Aldi. Boneless, skinless chicken breasts drop from $3.69 to $2.49 per pound. Dark-meat lovers find thighs at $1.55 per pound at Aldi compared to $2.19 at Costco. Breakfast meat fans save on bacon, too: $4.49 versus $6.24 per pound. For seafood, 1 pound of shrimp costs $9.49 at Costco and $6.99 at Aldi.

Beyond raw pricing, Aldi's smaller package sizes—often sold in 1- to 2-pound bags—help prevent freezer burn and reduce the likelihood of food waste due to unused leftovers. Ground beef, turkey, and chicken last only one to two days in the refrigerator and 3 to 4 months in the freezer. For steaks, the time limit is three to five days in the fridge and four to 12 months in the freezer. If you don't plan on consuming meat during this time period, purchasing smaller packages can save you money and prevent food waste.

Costco packs typically exceed three pounds, making them ideal only for those who bulk cook, host gatherings, or prepare meals in advance in portion-controlled portions. Costco does offer premium cuts and seasonal seafood promotions, but in many cases, especially when considering coupons, weekly deals, and loyalty points, local discount grocery stores like Aldi can be more budget-friendly. 

Costco's candy aisle shines only when it comes to gummy snacks. At Costco, gummy bears and worms cost $0.22 per ounce, whereas Aldi charges $0.25 per ounce—making Costco three cents cheaper on bulk gummy treats. But the advantage ends there. Aldi sells a 10-ounce bag of standard potato chips for $1.74 ($0.17/oz), while a 28-ounce Kirkland Signature bag at Costco lists for $9.99 ($0.36/oz). That's more than double the per-ounce price. The price difference is most stark when it comes to bagged popcorn. Costco's large tub or box runs $7.99, but you can snag a similarly sized Aldi bag for just $1.99.

Local discount grocery stores tend to offer a more robust selection of rotating weekly deals, and smaller package sizes help you avoid stale leftovers, delivering 40 to 60% lower per-ounce costs. If you're a bulk buyer who goes through several pounds of gummies monthly, Costco remains the go-to. Otherwise, discount stores like Aldi offer lower sticker prices, coupon-free rules, and mainstream snack options, meaning you'll get more bang for your buck—and fewer half-empty bags languishing in your pantry. 

Costco's bakery section offers a high volume of top-quality, large-format, and affordable baked goods, including croissants, pies, fresh breads, and bagels, all sold at low prices. However, their freshness degrades rapidly once the packaging is opened. At room temperature, most baked goods last two to three days before they become stale or begin to grow mold. Putting them in the refrigerator extends the shelf life by one to two weeks, but at the cost of a drier crumb and a firmer crust.

In a recent comparison, Aldi consistently undercuts Costco on many day-to-day bakery staples. A loaf of white sandwich bread costs $3.49 at Costco but only $1.29 at Aldi. Hawaiian sweet rolls cost $0.28 each at Costco, compared to $0.19 at Aldi. Fresh-baked cookies run $0.49 apiece at Costco and $0.39 at Aldi. Croissants are slightly cheaper at Aldi too ($0.66 vs. $0.72 each). Costco's oversized loaves and multi-pack rolls serve well for large gatherings or baking projects, but they require freezer space or rapid consumption to avoid staleness.

Local discount grocery stores, such as Aldi, offer smaller, bakery-fresh formats, often sold in eight- to twelve-slice loaves or six-pack rolls, that fit neatly into most refrigerators and breakfast routines. In addition, local bakeries, grocery store day-old sections, and discount racks often sell smaller loaves for under $2—comparable per-ounce pricing once you factor in membership fees and packaging costs. Artisanal bakers also flash-freeze portions of fresh loaves to sell in smaller packs, letting you thaw and toast exactly what you need.

Costco's massive boxes of name-brand cereal can look like a bargain on a per-ounce basis. Still, they come with two big drawbacks: no manufacturer coupons and quantities that often outlast a typical family's eating pace, leaving you with stale flakes or mushy clusters by the end of the box. In contrast, neighborhood supermarkets frequently run buy-one-get-one (BOGO) promotions, digital coupons, and loyalty-point deals, and many allow you to stack store coupons with manufacturer e-coupons. When you combine these offers, they can be as high 50% off name-brand cereal brands.

Cereal also loses its signature crunch over time, especially in pantries without strict temperature or humidity control. After opening a box, even storing it in a well-sealed container will cause the flavor and texture to deteriorate after three months. Choosing smaller packages, single-serve cups, or modest family-size boxes during a sale ensures you finish each container while it's still crisp. Even without any discounts or coupons, Costco's prices aren't that much cheaper. At Costco, Cheerios costs $ 0.21 per ounce, compared to $0.22 per ounce at Walmart. The 1.4 cents savings may be negated when considering membership fees, and the possible waste of throwing out the cereal after it has gone stale.

Another factor to consider when purchasing cereal in bulk is the variety of options available at Costco versus other retailers. While Costco may offer lower prices on certain types of cereal, it may not have as wide a selection as stores like Walmart or your local supermarket. This can limit your choices and potentially lead to buying more than you need. Buying in bulk also means storing larger quantities of the item, which can occupy valuable space in your kitchen, which can be challenging if you live in a small space.