Costco bulk buyers now spans a new generation: younger members expand the membership base and future revenue potential
During their recent earnings call, Costco management highlighted that “about half of new member sign-ups were under 40 years of age” and noted that this segment of Costco bulk buyers has led to growth for the company. Consumer Edge data provides an even more granular view of this trend, showing that a greater percentage of new customers fall under the age of 34 compared to the overall customer base, indicating that Costco’s newest members skew significantly younger than their existing members. These new members offer the immediate benefit of expanding Costco’s membership pool, while also offering a potential long-term benefit of a higher lifetime value. However, when examining spending behaviors across the discount and warehouse club industry, younger customers tend to have lower average spend per customer than those aged 35-54, suggesting that while these younger members represent valuable long-term growth potential, they currently generate lower per-customer revenue than the established middle-aged demographic that forms the industry’s most lucrative customer segment.
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