8 Grocery Items at Costco You May Be Overpaying For

09/05/2024

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Costco members are aware that some grocery items, like the famed $5 rotisserie chicken, should only be purchased at Costco. But, not everything is a bargain.

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According to FinanceBuzz, some of Costco’s best deals come from its bulk-discount pricing model. When you buy a large number of goods at wholesale prices, you can avoid markups on individual items. However, these individual items don’t offer the same savings, and you may be better off buying them from your local grocery store instead. Here are some of the worst items to buy at Costco if you want to save money.

1. Milk

It makes sense to grab a gallon of milk while doing your Costco shopping instead of waiting to purchase it elsewhere, but you may be spending up to double the amount.

Depending on where you live, a gallon of Costco milk sells for nearly double the amount compared to a gallon of milk from Walmart, according to FinanceBuzz. Su-Jit Lin, a writer at EatingWell, also noticed that a gallon of milk at Costco is just under $4, but you can sometimes find a better price per ounce, especially when it goes on sale. For example, Kroger often has deals on half-gallon jugs for only $1.29.

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2. Cooking Oil

Costco sells cooking oil in bulk, including the Kirkland Signature pack of two-count bottles with six liters of oil combined. Olive or canola oil only lasts a few months before it goes rancid. Unless you plan to do a lot of cooking with oil, it may go bad before you can use it all.

3. Fresh Produce

Buying fresh produce at Costco makes sense if you plan to use all of it within the next week. If not, you may be throwing it all away. You’re more likely to find a better deal on bags of frozen produce. Another option is to purchase fresh produce and then freeze what you can if you don’t use it all right away.

4. Herbs and Spices

According to the EatingWell Test Kitchen, ground herbs and spices are best used within a year as they lose their color and flavor quality over time. Instead of buying larger bottles at Costco, pick up smaller portions at your local grocery store.

5. Raw Chicken

Salmon, steak and rotisserie chicken are definitely some of Costco’s best deals in the meat and seafood section. Lin said she can typically save about a dollar per pound on chicken breasts or thighs at her local supermarket and portion them out in freezer bags. For example, she can purchase a large family pack of chicken breasts for as low as $1.79 per pound at a major supermarket, and chicken leg quarters often sell for as low as $0.59 per pound at grocery stores and Walmart.

6. Sandwich Bread

Costco’s bakery section is definitely appealing, but you might be overpaying depending on the type of bread or the brand you choose.

Two loaves at Costco cost between $5 and $7, which looks like a good deal, but Lin pointed out that major grocery stores often offer “buy one, get one” specials on premium bread brands like Pepperidge Farm, Sara Lee, Nature’s Own and Arnold.

7. Bagged Salad Kits

Costco’s family-sized bagged salad kits typically sell for $7 to $9. According to Lin, this costs about the same price per serving at other supermarkets, but you’ll be sacrificing variety — and there may be more waste if you don’t finish the entire bag. However, some Costco locations are selling more double packs with smaller-sized bags, but the dressed salad doesn’t keep very well.

8. Soda

You’d think buying soda in bulk at Costco would fetch a better price, but that’s not exactly the case. Costco does sell soda at a lower base price than most other grocery stores, but Food Republic noted that this isn’t true if your local supermarket is running a sale. Grocery stores frequently sell soda at a discount, and the best deals are typically around the holidays.