As a retail expert and deal-hunting connoisseur, I know that one of the most common questions older adults have is whether Costco, the mega-popular warehouse club, offers any kind of senior discount on its annual membership fee. After all, the prospect of special "senior pricing" can be enticing for those looking to stretch their retirement dollars.
In this comprehensive guide, I‘ll be putting my years of retail experience and insider knowledge to work to give you the full scoop on Costco‘s senior discount policies. We‘ll cover everything from Costco‘s membership options and demographics to how its approach to senior savings stacks up against other chains. Plus, I‘ll be sharing some of my expert tips for how seniors can maximize the value of a Costco membership. Let‘s get started!
Costco‘s Membership Options and Senior Participation
To kick things off, let‘s review Costco‘s membership levels:
- Gold Star: The standard membership at $60 annually, which includes a free Household Card for a spouse or domestic partner
- Business: Also $60 annually, with the added perk of being able to purchase items for resale
- Executive: Costco‘s premium membership at $120 a year, which offers 2% cashback on eligible purchases, additional discounts on services, and other perks
At all levels, a Costco membership grants you access to any of the company‘s nearly 550 warehouse locations across the U.S., as well as to online shopping at Costco.com.
So how many seniors are taking advantage of these offerings? While Costco doesn‘t share an exact breakdown of its membership by age, a 2017 study by analytics firm Numerator found that around 34% of Costco members are over the age of 55. Kantar Retail‘s shopper insights indicate that over a quarter (26.2%) of Costco‘s primary membership base is 65 or older. Clearly, Costco has strong appeal across generations, including to senior shoppers.
Why Doesn‘t Costco Offer Senior Discounts?
Given Costco‘s popularity with older adults, you might be wondering why the chain doesn‘t offer a senior-specific discount on membership. After all, many restaurants, retailers, and other businesses provide special promotions or reduced pricing for customers 55+, 60+, or 65+.
The reason largely comes down to Costco‘s unique business model. According to the company‘s fiscal reports, around 75% of Costco‘s operating income comes from membership fees rather than product markups. By relying on membership revenue, Costco is able to keep its profit margins razor-thin at just 11%, well below the 24-25% margins of other major retailers. These low margins are what allow Costco to offer such competitive wholesale prices.
However, this model doesn‘t leave much budgetary wiggle room for membership discounts, either for seniors or any other group. CEO Craig Jelinek has stated that Costco‘s ability to continuously provide great deals depends on keeping its membership fee income high through signups and renewals. Offering reduced-price memberships would undercut this core tenet of Costco‘s strategy.
Essentially, Costco has made the calculated decision that providing the lowest possible prices for all members is a higher priority than segmenting out discounts. Its memberships are already half the price of competitors like Sam‘s Club ($100/year) and BJ‘s Wholesale ($110/year), so it views its $60 annual fee as already an exceptional deal for seniors and younger shoppers alike.
How Costco Supports Senior Shoppers
While you won‘t find senior discounts, Costco does have initiatives aimed at making warehouse shopping more accessible and convenient for older members, such as:
-
Senior Shopping Hours: At most locations, Costco opens its doors one hour early from 8am-9am every Tuesday, Wednesday and Thursday exclusively for members ages 60 and up. This allows seniors to shop with smaller crowds, better parking options and freshly stocked shelves.
-
Costco Pharmacy: Costco operates nearly 500 pharmacies across its warehouses, which a 2019 Consumer Reports survey found to offer the cheapest prescription drug prices among 150 retailers. Costco pharmacies accept most major insurance plans, including Medicare, and allow non-members to fill prescriptions.
-
Costco Optical: Costco has optical centers in most warehouses offering eye exams, glasses, sunglasses and contact lenses at highly competitive prices. Seniors don‘t need a membership to book an exam, and members get even lower costs on frames and lenses. Costco Optical has been ranked the #1 place to buy glasses by Consumer Reports.
-
Hearing Aid Centers: Many Costco locations have on-site hearing aid centers with free exams, affordable hearing aids and ongoing support. Costco sells its own Kirkland Signature branded hearing aids starting at $1,399.99/pair, which is thousands less than other major providers.
-
Home Delivery: For seniors with mobility issues or a lack of transportation, Costco offers same-day delivery on groceries and essentials through Instacart in most metropolitan areas. Costco also ships many non-perishable items for free on orders over $75.
So while you won‘t get a senior discount, a Costco membership can still make shopping easier and more affordable for older adults. Let‘s look more at the specific savings seniors can find.
What Kinds of Savings Can Seniors Get at Costco?
One of my golden rules of smart shopping is that joining a warehouse club is one of the most powerful tools for slashing your household expenses. This absolutely holds true for seniors looking to make the most of a fixed income or nest egg. Costco offers unbeatable value across several key categories:
Groceries and Household Essentials
As mentioned before, a 2018 Numerator study found that Costco‘s overall prices are 17% lower than traditional supermarkets. The savings are even higher on Costco‘s popular Kirkland Signature store-brand products – Consumer Reports found these to be 20% cheaper on average than national brand equivalents.
To see this in action, check out these price comparisons:
| Product | Costco Price | Competitor Price |
|---|---|---|
| Starbucks French Roast Coffee (2.5 lbs) | $19.99 | $29.31 (Amazon) |
| Bounty Paper Towels (12-pack) | $19.99 | $28.55 (Target) |
| Nature Made Fish Oil (250 ct) | $14.49 | $27.49 (Walgreens) |
| Kleenex Facial Tissues (10 boxes) | $14.99 | $19.35 (Walmart) |
For seniors buying these items on a regular basis, the 17-35% savings can quickly erase the $60 membership fee.
Health and Wellness
Along with its low-cost pharmacy, optical and hearing aid services, Costco offers excellent deals on other health and wellness products frequently purchased by seniors. For example, a 2019 CR study found the following average costs of common OTC drugs at Costco vs. major drugstores:
| Medication | Costco Price | CVS | Rite Aid | Walgreens |
|---|---|---|---|---|
| Advil (100 ct) | $6.49 | $11.99 | $12.49 | $12.49 |
| Aleve (100 ct) | $7.89 | $11.49 | $12.49 | $12.99 |
| Claritin (30 ct) | $18.54 | $30.99 | $30.99 | $30.99 |
| Prilosec OTC (42 ct) | $16.99 | $24.49 | $25.49 | $24.99 |
Costco also has great prices on vitamins and supplements, mobility aids, skincare, dental care items and more.
Travel and Experiences
Through programs like Costco Travel, members can access discounted rates on hotels, rental cars, vacation packages, cruises and theme park tickets. For globe-trotting seniors, these savings can add up fast. For example, recent Costco Travel promotions have included:
- 20-30% off hotel stays in Hawaii, Mexico, the Caribbean and Europe
- Up to $1,000 in Costco Shop Card bonuses with qualifying cruise bookings
- Deeply discounted ticket packages to Disney World, Universal Studios and other destinations
- 25% off select rental car reservations
Electronics and Home Goods
Costco carries a wide selection of computers, smartphones, smart home devices, appliances and home furnishings at very competitive prices. Members also get free tech support and extended warranties through Costco‘s Concierge Services.
Whether a senior is looking to downsize homes, upgrade their devices, or simply make their daily routines a bit easier, Costco offers solid savings and support. Black Friday and post-holiday sales offer especially great deals in these categories.
As these examples highlight, a Costco membership can provide seniors with savings of anywhere from 15-50%+ across a huge variety of everyday needs and bigger purchases. Even without a senior discount, most older Costco shoppers will easily recoup their $60 annual fee.
How Costco Compares to Other Retailers
Of course, Costco isn‘t the only major retailer courting senior shoppers. Here‘s a look at how some of its biggest competitors approach senior discounts:
-
Sam‘s Club: Like Costco, Sam‘s Club charges $45 for a base membership and $100 for a Plus membership with cashback rewards. Also like Costco, it does not provide any discount for seniors. It also doesn‘t currently offer dedicated senior shopping hours.
-
BJ‘s Wholesale: BJ‘s similarly charges $55 for a base membership and $110 for a higher-tier Perks Rewards membership. It does not have a senior discount, but does host a Senior Savings Day on the second Monday of each month with added discounts.
-
Amazon Prime: Amazon‘s $119/year Prime membership grants free shipping, streaming, discounts at Whole Foods and other perks. It offers a Medicaid discount that brings the price down to $5.99/month, but no senior discount. However, seniors with a valid EBT or Medicaid card can get Prime for $6.99/month.
-
Target: Target‘s RedCard, which is free to sign up for, offers 5% off most purchases every day. Target does not provide a senior discount on top of this, but does offer other accommodations like a Drive Up curbside pickup option.
-
Walgreens: Seniors who join Walgreens‘ free Balance Rewards program can get 20% off W brand products and 10% off other private-label products once a month. Walgreens also offers a Senior Savings Day with 20-30% off on select days each month.
So in the realm of warehouse clubs, Costco is on par with Sam‘s Club and BJ‘s in not offering a senior membership discount. Some other retailers like Walgreens have more extensive discount programs, but Costco‘s everyday prices still tend to be lower on average.
Expert Tips for Saving at Costco
To close things out, here are some of my top tips for seniors looking to maximize their savings at Costco:
-
Look for the Kirkland Signature label – You can save an extra 20% on average over national name brands by buying Costco‘s well-regarded private label products.
-
Stack savings with the Executive membership – If you spend at least $250/month at Costco, upgrading to the Executive membership will get you 2% cashback rewards that more than offset the added $60 fee.
-
Buy prescriptions and health items – Costco‘s Pharmacy and Optical Centers are tough to beat when it comes to prices on medications, eyewear, contact lenses and hearing aids. You don‘t even need a membership!
-
Take advantage of senior hours – Shopping during the 8am-9am senior hours will help you avoid crowds, find the best parking and get first pick of deals.
-
Shop seasonal sales and clearance – Costco‘s prices might be great year-round, but seasonal promotions around holidays and post-holiday clearance events can offer savings of 30-50% off.
-
Fill up on gas – Most Costco locations have their own gas stations with prices averaging 21 cents/gallon lower than competitors. For seniors who drive frequently, fueling up at Costco can lead to major savings over time.
-
Avoid bulk overbuying – Only stock up on perishables and products you‘re sure you‘ll use. Getting a great unit price on something you end up throwing away erases your savings.
While a lack of senior discounts might seem like a sour note, I hope this guide has shown that a Costco membership is still one of the best tools older adults have for saving money. From groceries to medications to the vacation of a lifetime, Costco empowers seniors to do more with less. And that‘s a deal that never gets old!
