381 Footscray Road, Docklands
Phone 03 8602 0300
Today I finally managed to visit Costco Wholesale, the American chain of über-stores that sells everything under the sun at wholesale prices. Costco has really taken Melbourne by storm, as evidenced by the long line of cars waiting to enter its’ Docklands carpark every weekend. Lured by cheap prices and bulk quantities, more and more Melbournians have been forking over their $60 annual membership to access this bastion of consumerism. So, what were my impressions?
Firstly, I should point out that a valid membership is required for entry and compulsory for purchases. Members can bring in a maximum of two guests, who can freely browse but not buy. If the quota of two is exceeded, a guest pass can be obtained by filling in a form. Unfortunately, the counter where this takes place is also the one for returns, so it took Mel and I about 15 minutes in the queue to finally obtain a pass. Not a good start.
When we finally entered I was, quite frankly, amazed. The sheer scale of the place has to be seen to be believed. Yeah, it’s pretty big. There were aisle upon aisle of goods piled high on the rudimentary pallet shelving system which Costco say was one of the reasons why they can maintain low prices. Still, the brightly lit hangar-like space was not an unpleasant shopping experience, kind of like picking up your Ikea goods after visiting the showroom. The annoyance and danger actually came from fellow shoppers pushing around mega shopping trolleys.
The range of goods was huge: Optometry and eyewear, electronic goods like plasma TVs and iPods, office products, clothing, pet food, jewellery, toiletries, furniture and power tools. The food range was very extensive, everything from canned goods, fresh and frozen foods, meat, seafood, bread, fruits and vegetables. Seemingly, everything you’d want can be found under one roof, and in super sizes. It was like a juiced-up combination of Woolworths, Big W and Target.
I was impressed by some of the items: fresh trout and barramundi, Levi and Lucky Brand jeans, and a range of Chinese sauces. I do have some issues, though, about the Costco concept.
Was it really cheaper than elsewhere? In many cases it was, especially if you bought in bulk. For example, I saw a 1.5kg packet of Carmen’s bircher muesli for around $9, and we bought a 355ml bottle of Tabasco sauce for around $6. However, it’s still worthwhile to check the unit pricing. This is not helped by Costco’s slightly different unit pricing system. For example, the ever popular 60 rolls of toilet paper was unit priced at 100 sheets per roll, however, a roll has more than 100 sheets. This makes it difficult to compare with the unit price at other supermarkets, which are priced per roll. For interest, the bog rolls that we buy from Woolworths worked out cheaper than Costco, despite not coming in a pack of 60.
Another point is that it’s false economy to buy in bulk when you’re not really going to consume all of it and you end up throwing things out. Does one really need a 4.5kg block of toblerone or a frozen pizza that can only fit into a commercial oven? Food waste in Australia already runs into the billions each year and we don’t really need to add to it. Unfortunately, Costco is set up for impulse buying on an unprecedented scale.
Another disturbing thing was the amount of processed foods that’s available in bulk. Chips, chocolate snacks, biscuits, soft drinks, candy, processed canned meats, and more. With obesity already in epidemic proportions, the last thing we need is to encourage people to buy up big on junk treats.
Good planning (shopping lists, etc) will help to overcome some of the above issues, but it’s still challenging given that many items are in bulk. There are some bargains to be had, but the convenience has to be weighed up with driving to Costco, fighting through the carpark, and potential food wastage. Getting to the carpark itself was a trip: one had to queue to use the massive carpark elevator which fit about eight of the mega trolleys.
Costco has its place. For people with large families, it can result in a lot of savings. For people who plan well and are not enticed by impulse buying, there are bargains to be had. The range and produce are quite good, junk food not withstanding. However, for me, the best shopping concept remains the local markets like Queen Victoria. America has not really been a shining example of ethical consumerism or good health trends, so I hope that we don’t go down their path of consumerism without cost. The European trend of local fresh markets is still the one that appeals to me the most.
I got a chance for a sticky-beak last year, and your thoughts pretty much sum up mine.
On the one hand, the sheer scale of the thing is pretty awe-inspiring and there are some good electronics bargains to be had.
On the other, it all left me feeling a bit nauseous: the heavy focus on packaged, junky food and the way it just encourages excessive consumption in such a blatant way. It really is the absolute opposite of the movement towards locally grown, ethically produced fresh food.
I saw a few people with lots of kids in tow buying up big on basics. I saw waaaaay more very overweight people bulk-buying donuts, ice-cream, pizza and booze.
Still, a pretty fascinating place.
Yeah, I been there and it’s so nerve wrecking to fight everyone to grab stuff, queue up AND pushing the huge trolley. YIKES! The only good thing is electronics and optometry- they are way cheaper I heard.
Btw, how did you take that pic???
We are members, but Costco is way less exciting than I thought it would be. I probably go there every 2 months for a very select number of things. They have really good frozen fish, salmon & barramundi in particular. There are a few things that are massively cheaper, like maple syrup and coffee. We have 3 kids and churn through the Vegemite, washing powder etc so we buy them there as we do save money.
I have worked out that as they mainly sell premium brands, you only save money if you already buy a premium brand. E.g. if you already buy Kleenex loo paper, you will save money buying your Kleenex there, but if you buy generic and are happy with it, stick with it as Costco won’t save you any money in that department.
They also have very limited choice, which seems crazy considering how big they are. For example, there’s only one brand of deodorant, one brand of water crackers, etc. If you don’t like that brand, you have no other choice.
I agree about the massive potential for food waste. I have been sucked in to buying big packs of fruit & veg in particular and found myself putting half in the compost, or eating it when it was past its prime. Meat prices are still dearer than my local market. The “bake-at-home” meals and cakes look utterly revolting! And don’t get me started on the food in the cafeteria… bleccch.
As you said, if you have a big family and plan well, it can work. Otherwise, it’s probably not worth it.
Nice summary EG. Now get ready for the hate mail (I received disturbing amounts of private hatemail from Costco “lovers”) in response to my article on it back in August. (Actually I hope you’re spared that vitriol.)
As an aside, the European market thing is far from a “trend”, except in Britain which has seen a major rise in expensive farmers’ markets. Most places in Europe have in fact seen the same decline in markets in favour of big-box retailers like Carrefour, Auchan, Tesco and the like as we saw in Australia in the 80s and 90s towards supermarket chains and has been the case in the UK and USA for even longer.
Thanks for everyone’s comments so far.
Ruth, it’s mad impulse buying isn’t it? With kids in tow, the parents have no chance. It’s scary the amount of processed junk that parents might be giving to their kids.
Piggyeatalot, we actually got the photo from The Age website.
Ms Baklover, great point about the limited range. You’re also right about the premium brands. I should point out that the loo paper we get is not Kleenix, hence it’s cheaper for us elsewhere.
Duncan, seems we are very much on the same wavelength! Mel and I have been watching past episodes of River Cottage and seen the invasion of chains like Tesco. They practically take over whole towns.
I’ve been to Costco once, and I think that was enough for me. As someone living on their own, it’s not the best option for me anyway, but I also just didn’t like the hassles (ie. crowds, parking), and it can’t give me many savings on where I currently shop.
As for the electronics, I’ve found that I can usually get as-good prices, if not better, at places like the Good Guys.
It all really adds up to Costco not being the place for me.
I was speaking with a friend who lives on the West Coast of the US about Costco just before they opened last year.
He told me that the only time most of the people he knows visit Costco is when having a party or large get-together. The thought of shopping at the place was as uninteresting to him as it is to many of the readers here.
He’s definitely not a “middle America” type person, though, not one of those http://www.peopleofwalmart.com types.
I kind of treat Costco like a playground. It’s huge, it’s great on a weekday (no traffic jams, no human traffic, it’s actually possible to have a whole aisle to yourself!), and it’s fun just having a place to walk around sometimes.
I share your sentiments re. the processed foods that they’ve got in there and they certainly send a shiver down my spine. Their cakes/muffins scare the living daylights outta me (just look at what’s on their ingredient list!).
But I’ve also discovered that there are things worth getting (especially when you can’t make it to the market on a week day and are in need of fresh food). One of my best buys is the 500g of Lescure French butter at $12 a pop; whereas it normally costs $9 for half of that in delis and supermarkets. Pure Organic milk is also a steal at $3.89 for a 2L carton, whereas the same brand costs $5.19 at Coles/Safeway. My craziest buy so far has to be the 2kg block of Philly cheese which came in handy when I baked 2 cheesecakes in one weekend!
So yes, there are great deals to be had but I’d definitely recommend some pricing research be done in order to get the best of the membership (and wisdom to not overbuy so as to create more wastage)!
That type of bulk-shopping mega-centre nightmare always reminds of the ‘Try-n-Save’ in The Simpsons. As a firm advcate of buying locally I can’t imagine anything worse. It sums up all that is bad (and that’s plenty) about rampant American-style consumerism.
Those capitalist pigs will be first aginst the wall when the Glorious People’s Revolution comes.
In the meantime, buy local, support ethical trading, eat well.
For what it is worth, Woolworth and Coles online stores also unit price toilet paper per 100 sheets, not per roll. I’m not sure about what they do in store.
The best thing about Costco when it first opened, was that it stocked Garofalo pasta for about $1.50 a packet (min. packets of 8). The pasta is incredibly good.
Unfortunately, it has since been replaced by some organic Australian brand which I think makes inferior pasta.
I am also always tempted by the Le Creuset pots..
Great post. Daz and I attempted to enter Costco WITHOUT a membership. oh that was a funny experience….we got kicked out….oh how we laughed and laughed.
I think I’ll need to get myself a big family with a few adopted kids to boot in order to make costco worth the trip.
First time I went, a friend and I went in using his brother’s membership card in the midst of their transition into compulsory photos ID’s on each card- so I’ve heard- mainly from the lady at the front asking us for our ID to prove we were in fact the owners of the card. Luckily, it got so busy, that she just let us through.
I agree that it was a little mind boggling seeing all these enlarged versions of consumer products! I could not believe the size of the mayonnaise jars! I wouldn’t be able to get through it by the time it expires. Yep- best for large families.
I’ve found Costco good for things like laundry powder and cleaning products, deodorant, soap – stuff that keeps if you don’t have a large household. If you have somewhere to keep it, and know the unit price for things elsewhere, you can save about 30% (or at least I did last time I went). The Lasoo App on the iPhone is great for checking on the spot if something is on special elsewhere too. I agree that you must avoid it on weekends though, the size of those trolleys makes them lethal in the wrong hands!
I agree with the false economy comment and the waste. I have a friend who bought a 900 pack of zip lock bag for a household of two. She would never use them up.
I am against the mass consumerism. Surely we do not need more. I can see how Costco has its place for large families (and I’m talking at least 4 teenage sons type large families) and small businesses. But I find that for a family of the two of us, buying food or household things from there is just not necessarily. Mind you, I do rather like 40% off RRP cookbooks they have to offer.
But personally, I’d stick to food shopping at the market.