5 Ways This Little-Known Grocery Warehouse Is Better Than Costco And 5 Ways It's Worse

Warehouse grocery stores help shoppers save money by providing products in bulk at discounted rates. Shopping at these bulk stores also saves customers time because they can fully stock their kitchens in one fell swoop instead of making numerous inconvenient trips to the grocery store each week. Large stores like Costco and Sam's Club are popular options for bulk shoppers, but a lesser-known grocery warehouse called WinCo Foods provides a unique shopping experience as well.

WinCo Foods is a smaller warehouse store chain that originated in Boise, Idaho, and carries bulk items at discounted rates, much like the bigger-box stores. But there are some key differences to shopping at this store compared to Costco. You can expect a smaller selection of products but you also don't have to worry about an annual membership fee. We've done some research and found five advantages and five limitations to shopping at WinCo instead of Costco so that every shopper can make the right decision for themselves.

A huge advantage of shopping at WinCo is that customers are not required to have any sort of membership to enter the store. The company emphasizes an "everyone saves" mentality by not imposing a membership fee on shoppers. Alternatively, Costco does famously require a membership fee to shop. The company explains that the purpose of the fee is to "help to offset operational costs so [it] can keep [its] prices low."

In September 2024, Costco increased its membership fee for the first time since 2017. Its basic membership now costs $65 annually, and the executive membership costs $130. Members must scan their cards to enter and shop in the warehouse, fill up their tank at the Costco gas station, buy food and drinks from the food court, and reap all of the other benefits of the Costco membership. For the bargain shoppers out there who don't want to spend money before they've even set foot in the store, WinCo is a better option.

One of the perks that comes along with the Costco membership is having access to the Costco gas station. Not every warehouse location has a gas station, but the company provides information about which locations have pumps as well as hours of operation and gas prices by location. Costco is known for providing consistently low gas prices exclusively to its members. Of course, gas prices vary by location and the savings may be more obvious in some states than others. As one Redditor shared, "If you save 10 cents a gallon and get 10 gallons a week, you almost paid for your membership."

Another huge benefit of the Costco gas station is that shoppers are able to fill up the tank with Top Tier gas and get their grocery shopping done right in the same place. For some on-the-go shoppers, or those looking for the perfect road trip stop, the convenience is worth the fee.

Shopping in bulk can be extremely convenient and limit the number of trips you have to make to the grocery store. However, it's unfortunate when you buy food in large quantities only for it to go bad in the fridge because you can't eat it before the expiration date rolls around. Costco has great options for those shopping for families or larger groups because the prepackaged portion sizes are large enough to feed multiple people, but finding viable options for individual shoppers can be difficult.

As a grocery warehouse, WinCo also sells items in large quantities, but it has a section of bulk bins that allows shoppers to select exactly how much of a certain product they want to buy. Bulk bins are great for those who are shopping for one because you can customize exactly how much of a product you want to buy while still maximizing your savings. One Redditor explained, "For a family, it's Costco. WinCo is Costco but for individuals." WinCo provides more than 800 products in its bulk bins, including pasta, rice, spices, candies, beans, dried fruits, and so much more.

One of the biggest factors taken into consideration when shopping is convenience. Most of us do not want to spend more time grocery shopping than is necessary, so it's always nice when we have our favorite store close by. Because WinCo is a much smaller company, it doesn't have nearly as many locations as Costco. WinCo has 141 retail locations across the U.S. compared to Costco's 617 locations. WinCo retail stores can be found in the following states: Arizona, California, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, and Washington.

On the other hand, Costco warehouses can be found in every state except Rhode Island, West Virginia, and Wyoming. Not to mention, Costco warehouses can be found in seven other countries outside of the U.S. as well. Convenience plays a huge role in where we choose to shop, and because Costco is more available in many areas of the U.S., some shoppers may elect to choose it over the smaller warehouse chain.

Whether it's a craving for a late-night snack or a forgotten item on the grocery list that pulls you back to the store late at night, having access to the store 24 hours a day is a real advantage. WinCo is one of few grocery stores that actually does stay open 24/7. Most locations proudly remain open 24 hours a day, seven days a week, with a few exceptions in some of its Oregon locations. As far as holidays go, the store is only closed on Thanksgiving, Christmas Day, and part of Christmas Eve.

Costco hours vary depending on location, and you can use its Warehouse Location tool to check hours of operation for specific store locations. However, no Costco location is open 24 hours a day and it is consistently closed on seven holidays throughout the year: New Year's Day, Easter Sunday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Costco has gained a cult following for a number of its products, and its beloved food court hot dogs are chief among them (giving the $5 rotisserie chicken a serious run for its money). As of April 8, 2024, only Costco members can enjoy the food court offerings, and the quarter-pound beef hot dog meal remains one of the most celebrated perks of the membership, not only for its delicious taste but also for its unbeatable price.

In 1985, Costco introduced the now infamous combo, which includes a hot dog and a soda for $1.50. Today, the price remains the same, and Costco Chief Financial Officer Gary Millerchip seems dedicated to keeping it that way. CNN reporter Nathaniel Meyersohn shared Millership's quote on X, which read, "I also want to confirm the $1.50 hot dog price is safe." While almost everything else has skyrocketed in price due to inflation, the stable hot dog combo continues to win over customers and helps maintain a sense of loyalty with its members.

WinCo's 141 store locations are employee-owned through an Employee Stock Ownership Plan (ESOP). This program involves the company allocating portions of its employees' wages into an ownership account so that the employees are actually part owners of the store. Being employee-owned encourages workers to be more invested in their work and provide the best experience to customers while keeping costs lower.

The very first Costco warehouse opened in Seattle in 1983, and Jim Sinegal and Jeff Brotman are credited with building the empire that the retail store is today. Costco was privately owned by Sol Price until 1985, but since then, Costco has been a publicly traded company in which investors own shares. The Vanguard Group, Blackrock, and State Street Corporation are the biggest shareholders in the company. Since it's a much larger company and ownership is diluted, you might not get the same friendly and devoted customer service as you will from Winco, where the owners are members of the community.

Another amenity that Costco provides for its members is access to a full pharmacy and optical center. Members can fill prescriptions and either pick them up at the warehouse or use Costco mail order to have them delivered. You can even fill or refill pet prescriptions there! There are pharmacists available if customers have questions on medications and it even provides access to online doctor visits. Additionally, it has the Costco Member Prescription Program to help members save on their prescriptions.

The Costco pharmacy aims to make filling and refilling prescriptions as simple and effective as possible and remains one of the greatest perks of the Costco membership, especially for those who are looking for a one-stop-shop experience. Comparatively, WinCo is a much smaller company and does not have the resources for a full-service pharmacy. However, it does sell some over-the-counter medications in-store.

WinCo is dedicated to creating a "different kind of grocery shopping experience" for its customers, and it has plenty of ways of keeping costs low to prove its dedication to consumers. One such cost-cutting measure is that the company does not accept credit cards as a form of payment. Instead, customers can use cash or debit cards to pay for their groceries. This helps the company bypass expensive credit card transaction rates and keep prices lower for customers.

Another unique way the store remains so affordable is that it has customers bag their own groceries in an effort to keep labor costs down. It provides digital coupons on its site and remains employee-owned all in an effort to give customers the lowest prices possible on essential products. Starting in 1998, WinCo opened its own distribution centers and has continued to do so since. Having its own distribution centers helped the company deal directly with suppliers and vendors and alleviate unnecessary costs associated with middleman distributors.

While WinCo boasts a different kind of grocery shopping experience, Costco provides a shopping experience that goes far beyond the food. True to its mission to be a one-stop shop experience for its customers, the retail giant carries a wide range of products in almost every category. Whether members are looking for a new wardrobe or to completely refurnish their home, Costco has it all.

It sells clothing options for the entire family, covering everything from baby clothes to leggings, outerwear, basics, and shoes for kids, men, and women. It also carries an impressive array of electronics, furniture (both indoor and outdoor), cleaning supplies, toys, luggage, and more. Winco's product selection varies by location. The store does tend to carry some non-grocery items such as cat litter and baby diapers, but options are much more limited. Costco is the best opportunity for shoppers who are looking to cover all of their bases at one store.