Costco is a big winner of the gas price chaos
Business Insider • • business
Key Points:
- Rising gas prices in the US, with averages above $4 per gallon and surpassing $4.50 recently, are driving more consumers to fuel up at warehouse clubs like Costco.
- Costco reported an 11.7% increase in US comparable sales last month, with fuel sales contributing 3 percentage points, alongside a 3.8% rise in store visits and an 8% increase in non-gas transactions.
- A survey showed over 90% of drivers took steps to save on gas, including increased use of club stores (36%) and fuel rewards credit cards (27%), with many also using loyalty programs and choosing gas stations based on price.
- Despite cutting spending in areas like dining and entertainment, consumers are maintaining or increasing their shopping at Costco, which benefits from both fuel sales and in-store purchases.
- Higher-income households continue to buy gas steadily, while lower-income consumers are reducing their gas purchases, highlighting a growing economic divide amplified by fuel costs.