Table of Contents
Cost of Living Showdown: Costco vs Coles
A recent price comparison conducted by Adelaide’s Ri Springbett highlights the growing appeal of Costco in Australia, as she evaluated the cost-effectiveness of shopping at the bulk-buy retailer compared to Coles. With 15 locations currently across the nation, Costco’s membership model has attracted a significant number of Australian shoppers.
Membership Worth?
After being a Costco member for five years at an annual fee of $65, the 37-year-old Springbett questioned whether the membership continues to provide value for her family of three. She routinely shops at Coles and sought to determine if she was indeed saving money by buying at Costco.
“Costco is known for bulk-buy discounts, but as a family of three, I wondered if it was beneficial for us,” she shared with Yahoo Finance.
Price Comparisons
Springbett was astounded by her findings, discovering that certain items were priced 40 to 50 per cent lower at Costco. However, she noted that many of Costco’s items are private-label products, which necessitated her comparison of branded items available at Coles.
For instance, while a 3.92kg pack of Australian mince at Costco cost $10.99 per kilogram, a comparable 500g pack at Coles was priced at $20 per kilogram. Other comparisons revealed that free-range eggs were $0.67 per 100g at Costco (for a 30-pack) versus $0.94 per 100g at Coles (in a 12-pack). Additionally, popular brands such as TipTop bread and whole roast chicken showed similar price disparities, with Costco’s prices being considerably lower at $3.69 and $7.99, respectively, compared to Coles’ prices of $4.50 and $12.50.
.
Springbett acknowledged that her survey was limited, yet the savings she realised compelled her to reassess the value of her Costco membership.
Growing Grocery Costs
A broader trend has emerged surrounding grocery spending in Australia, where households now average $233 per week as reported by Finder. This figure signifies a striking 27 per cent increase from only a year previously. In light of rising expenses, many Aussies, like Springbett, are increasingly seeking options to lower their grocery bills by comparing prices across different retailers.
The Bulk Buying Advantage
Finder’s money expert, Rebecca Pike, noted that Costco’s strength typically lies in offering lower unit prices when purchasing larger quantities. She stressed, however, that consumers should conduct their own thorough research to ascertain the best deals in their locality before committing to a bulk-buying strategy.
“Not every item will be the cheapest,” she warned, emphasizing the need for consumers to understand unit prices at their local supermarkets. For smaller households or those with limited storage, bulk buying may be impractical. Pike also advised consumers to ensure that their savings justify the membership fee.
Both Springbett and Pike emphasised the importance of being strategic when shopping, which often includes sticking to a list to prevent overspending.
Conclusion
Reflecting on her Costco experience, Springbett concluded that her membership is now warranted due to the savings achieved on essential items, alongside additional benefits from purchasing fuel at Costco. By shopping intelligently and occasionally bringing along guests to share the cost, she finds that shopping at Costco is both economical and worthwhile.
While Coles remains a staple for weekly shopping, Springbett noted that her approach to Costco would now encompass purchasing more bulk items, always with a plan in place to prevent impulsive spending.
For many Australians, the search for cost-efficient grocery shopping continues, with services like Costco playing a pivotal role in this journey.
