COVID - 19: Retailers are flocking back to Costco

Customers have been flocking back to warehouse clubs in recent months at levels even surpassing pre-pandemic levels, and Costco is dominant when it comes to market share according to a new report.

Foot traffic analytics company Placer.ai ran the data which shows Costco leads the way with 55.5% of wholesale customers walking through its doors in August compared to Walmart-owned Sam s Clubs at 36.2% and BJ s Wholesale standing at 8.3%.

Costco visits have increased consistently compared to 2019, with visits in June, July and August up 9.8%, 13.8% and 12.8% compared to the equivalent months two years prior, Placer.ai reported. The incredible surge of visits is a strong sign that the brand not only succeeded in having relative strength during the pandemic, but also turned that short-term strength into a foundation for long-term success. Considering the stability of its membership model and the sustained strength seen prepandemic, there is real reason to believe that Costco will be even stronger in the coming years. But all three wholesale clubs are seeing gains for 2019. During August, visits were higher at Sam s Club and 15.4% at BJ's compared to two years ago. For July, those figures were 13.8% for Costco, 18.1% for Sam's Club and 17.1% for BJ's.

As COVID - 19 continues and the delta variant continues to increase, Costco has reinstated purchase limits on some items such as paper products and water, and reversed its decision to lift senior shopping hours over concerns about virus.