Gen-Z are discovering joys of Costco for discounts on groceries - and have clever hack to save money on bulk-bought food

Gen-Z has discovered a clever hack to fight higher price points by turning to big box store giants that sell items in bulk, and splitting it up between their friends.

Shoppers in their 20s and 30s without children are battling inflation as well and turning to major retail giants like Costco and Sam's Club to stretch their grocery budgets.

Sam's Club, owned by Walmart, is seeing explosive growth among its youngest members. A recent surge has Gen Z shoppers (aged 27 and under) leading the pack, with memberships jumping a whopping 63% in the last two years, reports the Wall Street Journal.

This younger generation, along with millennials (aged 28 to 43), now accounts for a significant portion of Sam's Club members, reaching a quarter of their total base.

The surge in Gen Z memberships can be attributed to two factors, according to Rupesh Parikh, a senior analyst at Oppenheimer.

For starters, it coincides with Gen Z entering adulthood and establishing their own households. 

Secondly, these young shoppers are attracted to the cost savings offered by bulk purchases. They view the large quantities, like those enormous tomato sauce crates and jumbo chicken packs, as an opportunity to split the cost with roommates, friends, or family. 

A recent survey of over 1,000 people by market research firm Advantage Solutions revealed that nearly 40% of those surveyed, aged 25 to 34, reported sharing their bulk groceries with others

And Gen Z aren't the only ones shopping this way as a third of those who took part in the survey reported they split their bulk items.

Grocery prices may be easing slightly from their 2022 and 2023 peaks, but Americans are still feeling the pinch at the checkout. 

In fact, shoppers are spending an average of 11.2% of their disposable income on food, according to the latest Agriculture Department data, reflecting the lingering impact of inflation.

While warehouse clubs like Costco and Sam's Club report net sales increases this year, they aren't fans of members sharing their memberships to exploit the benefits.

Both stores implement measures to limit guests, with Costco even performing ID checks.

To overcome the barrier of membership fees, some young shoppers, like Andrew Watson and his roommates, are sharing memberships.

Watson, a pre-med student, told WSJ he splits the cost with his housemates, allowing them to stock up on staples like chicken breasts at a discounted price.

'We come together as a house every day. It really helps us to be cohesive,' said Watson. 'Buying in bulk is a no-brainer.' 

The practice extends beyond student housing. Autumn Lucy, a tech worker, told WSJ she utilizes her mother's membership to buy in bulk with her sister.

However, bulk-buying with membership sharing isn't without drawbacks. Devak Nanda, a recent graduate, told WSJ he discovered the limitations firsthand.

The long walks to Costco, limited storage space in their apartment, and the pressure to consume large quantities before spoilage became downsides.

Nanda even resorted to creating a spreadsheet to track their spending, ultimately revealing that the savings weren't significant enough to justify the hassle.

'My first little bit of friction was that basically whatever you buy, especially if you're somebody who cooked, is what you're going to be eating for a while,' Nanda said. 'That gets pretty boring.' 

He jokingly admits the only real benefit became the store's famous $1.50 hot dog and soda deal.