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Motley Fool - Wed Oct 5, 2022
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Costco is one of the most popular retailers in the United States. The company offers a wide variety of products, ranging from food to household items and furniture. Costco is known for its bulk buys and cheap prices, but what are the five most popular products sold there?
1. Toilet paper
Yes, that's right! Costco's best-selling item is its Kirkland Signature Bath Tissue. It sells more than a billion rolls every year, bringing in over $400 million dollars in revenue. Costco's toilet paper is thicker and more absorbent than most other brands. It is also less expensive per sheet than many other brands.
2. Rotisserie chicken
Costco's chickens are roasted fresh throughout the day, and they are a great value at just $4.99 each. A similar rotisserie chicken at chain grocery store Ralph's is double the price at $9.99. How does Costco make money on its chicken? It doesn't, and in fact it loses $30 million to $40 million a year on the hundreds of millions of chickens it sells every year. Costco places its chickens in the very back of the warehouse, hoping you'll purchase more items as you pass more profitable products.
3. Bacon
Costco's bacon is also very popular with shoppers. The bacon is thick-cut and smoked, and it tastes great. It's also a great value, as it is less expensive than many other brands of bacon. Per Consumer Reports, Costco's Kirkland bacon was rated No. 1 in its taste test. The Kirkland Signature Hickory Smoked Bacon is crispy and has the right balance of fat and meat flavors. Even better, Costco sells it at $6.25 a pound, which is about $1.25 lower than its competitors.
4. Hot dogs
The price of Costco's $1.50 hot dog and soda hasn't changed since 1985! Costco sells 100 million hot dogs every year. This popular food court combo is a customer favorite and one of Costco's most recognizable products.
5. Gas
When driving up to a Costco, you can't help but notice the long line of cars waiting to fill up their cars. Costco's gas prices are extremely competitive. Savings is based on where you live, with some Costco locations selling gas $0.30 cheaper per gallon than its nearby competitors.
Costco sells a wide variety of items, ranging from food to household goods. The company has become known for its high-quality items, and it is a great place to shop if you are looking for quality at a good price. These five products are Costco's most popular items, drawing in millions of shoppers every year. Shopping there might even help your finances, too.
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