Costco has expanded its product offerings to cater to affluent shoppers who are looking for high-end luxury goods. In an interview, Hamilton “Tony” James, the company’s chair, revealed that Costco aims to sell premium items like gold bars, Rolex watches, and ten-karat diamonds alongside bulk deals.
According to Numerator data, Costco is more popular among higher-income millennials and Gen X households than its peers. The company has sold products such as a $400,000 diamond ring, a Bugatti electric scooter, and a six-person indoor sauna in the past. However, James noted that it’s unclear whether affluent individuals are purchasing these items or just people looking for economic value.
Analysts estimate that Costco sells around $200 million of gold and silver monthly, with demand often exceeding supply. Despite targeting this segment, James emphasized that Costco is not a dollar store. The company aims to offer premium products at competitive prices, such as selling a $1,000 TV for $500, rather than just low-cost items.
James’ approach reflects the company’s strategy to appeal to members with higher disposable incomes. By offering luxury goods alongside bulk deals, Costco can provide its affluent shoppers with unique shopping experiences and competitive pricing.
Source: https://www.businessinsider.com/costco-chair-diamonds-rolexes-appeal-richer-customers-seeking-deal-2025-2