Costco alcohol Archives - SavingAdvice.com Blog

Costco alcohol sales have made up $3.8 billion in revenue for the company within the last year. Although Costco shoppers are usually headed for the items you can buy in bulk (food, toiletries, etc.), it seems that members of the wholesale retailer also love booze, especially wine.

According to Bloomberg, the holiday season didn’t go well for Costco. The company’s earnings went up $1.17 per share, significantly lower than the projected $1.36 increase. Alcohol sales are the only thing that saved Costco last quarter and it seems sales are continuing to climb.

Costco’s Kirkland Signature Alcohol

So, what’s the big deal? What is so special about Costco alcohol that makes consumers spend billions of dollars on it over the span of a year?

Since Costco started selling wine (2003) and liquor (2007), alcohol buyers at Costco have become a bit cultish (not buying booze anywhere else). This isn’t that surprising to Costco analysts though. There are two things they know about Costco shoppers: they are loyal and they like to buy things in bulk. The latter fact means a lot when it comes to alcohol sales.

The company has been smart in the way it displays its alcohol as well. Costco has 250 alcohol items across three beverage categories and the company is choosy when it comes to what is on the shelves. It rotates the alcoholic beverages on the shelves for a limited time, making people buy more while supplies last.

Costco Alcohol’s Quality

Well, people spend plenty of money on alcohol anyway but, according to Costco members, the quality is the selling point. Although producers of the Kirkland Signature alcohol products keep production a secret, many people claim that companies behind the alcohol are big names, like Grey Goose, with Costco labels on them.

David Schick, lead retail analyst at Consumer Edge Research, said that the quality of Costco alcohol is what helps sales. “They use very high-end producers — premium all the way up to super-premium and beyond,” he said, and that keeps customers coming back for more.

Costco Wine

Costco customers aren’t just gunning for Costco alcohol either. In fact, Costco wine accounts for half of Costco’s alcohol sales. People love Costco wine and, like their Kirkland Signature alcohol, they buy it in bulk. Read the Costco Guide to Wine to learn more about the best wines Costco has to offer.

Costco Alcohol Has a Low Markup

Another thing keeping customers coming back for more is the low markup Costco is able to provide. Costco’s alcohol markup is only 10 to 14 percent, much lower than liquor store’s 25 to 45 percent markup. Other companies selling private label alcohol simply are not able to match Costco’s low markup prices.

Private labeling, like what Costco is doing, is becoming a popular way for companies to increase sales. “Private label continues to grow as a dominant strategy in retail — especially when it migrates from being a ‘label’ to more of a ‘brand,’ which Kirkland has done,” said David Bassuk, managing director at consulting firm AlixPartners. “Now it’s a well-known name and gives the consumer a perception of value and a good deal.”

Due to individual state liquor laws, Costco is currently able to sell beer and wine in 80 percent of its stores (liquor in 60 percent). One of Costco’s main competitors, Walmart, also sells wine and spirits but not at the level Costco does. In fact, among retailers, Costco is likely the leader in liquor sales.

If you liked this article you may also enjoy reading:

A Review of Costco Cakes

New 2017 Costco Locations

Costco Chicken Plant is Approved

For more info on Costco check out these articles.

Is the Costco Membership Fee Worth it?

Is a Costco Executive Membership Worth the Price?
Costco Gas Calculator: Will I Save Money Buying a Membership if All I Buy is Fuel?

Costco Return Policy

Costco Holiday Schedule

Costco Tires

You can check out our articles for Target as well.

Target Christmas Store Hours

Target Holiday Schedule and Store Hours

Photos: Reddit and MN Traveler

This is a question that comes up from time to time when talking about Costco. There has been more than one occasion when people have asked me, “Can I buy alcohol at Costco without a membership?” The answer to this question is, “Yes, you can buy alcohol at Costco without a membership,” but it can be a little more difficult than just walking in and buying it, depending on where you live.

Costco warehouses don’t offer free day passes for non-members like some other warehouse stores do, so you can’t buy alcohol at Costco that way. What Costco does have is the Costco cash card which is their version of a gift card. This is the easiest way to shop at Costco without a membership with the benefit of being able to buy anything at the warehouse including gas, and not just booze. The problem is only Costco members can buy a cash card, so you’ll either need to have a friend buy you one, or buy one on the secondary market, such as on eBay or Amazon, if you want to access the warehouse this way.

If you live in certain states, you don’t even have to have a cash card to buy alcohol at Costco. This is because some states have laws where any establishment selling alcohol must make the sale of the alcohol available to the public. In these cases, state law forces Costco to allow those without a membership to buy alcohol at their stores. The following twelve states have laws in place which all non-members to buy alcohol at Costco:

Arizona
California
Connecticut
Delaware
Hawaii
Indiana
Massachusetts
Michigan
Minnesota
New York
Texas
Vermont

If you go to a Costco in any of the above states, when you get to the door, simply tell the door checker you are there to buy alcohol. In most cases, you should be allowed in without any issue, but if the door checker isn’t familiar with the law, they may stop you. In this case, ask to talk to a manager who should be familiar with the policy and let you pass. If you happen to live in any of the other 38 states, your only option is to use the cash card method.

Once at checkout, you will again need to tell the cashier you don’t have a Costco Membership. The cashier will have to call over a manager to get approval for the transaction. Most Costco stores have managers right on the checkout line, so this should only take a few seconds, and it shouldn’t cause others in line to wait a long time. It’s important to note that Costco currently doesn’t take most credit cards (although that might soon be changing), so for now you’ll have to make your purchase with cash or a debit card.

The best part of both these methods is that there is no extra charge when making the alcohol purchase. You pay the exact same price as those with Costco memberships do, and the alcohol prices at Costco can be significantly cheaper than at other stores, especially brand name alcohol. So the next time you are having a party or need to stock up on alcohol, remember that you don’t need a membership to take advantage of Costco’s inexpensive prices.