When you think of your typical Costco member, you probably picture someone like me — a frazzled, sweatpants-clad suburban mom with unbrushed hair whose cart is loaded with snacks, eggs, milk, and more tissue boxes than she can count.
But it’s not just hot-mess moms you’ll see roaming the warehouse club aisles these days.
Costco is attracting a younger generation of shoppers.
And the warehouse club retailer believes the demographic shift could be an important driver of future growth.
Costco is attracting a younger generation
During Costco’s fourth-quarter 2026 earnings call, CFO Gary Millerchip highlighted the younger shopper trend, pointing to the growing number of members under age 40.
“What we’ve also been pleased with in that membership growth is seeing a younger member and sort of seeing that penetration go through over a quarter now of all members being under 40, we think is a really positive sign to your point about continued growth in spend per member,” Millerchip said.
The milestone suggests Costco is finding ways to appeal to shoppers who may have different habits and expectations than the generations that helped build its business.
It also offers a potential opportunity to establish long-term relationships with consumers who could remain members for decades.
Costco’s membership model is central to its business. So it wants to attract as many young shoppers as it can to boost that revenue stream.
Younger members can benefit, too. Costco’s food offerings, gasoline prices, and private-label Kirkland Signature products give shoppers of all ages many ways to offset the cost of membership while reaping value.
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Costco is upping its digital game
Of course, one thing that distinguishes younger shoppers is their tendency to make purchases online or using apps.
That’s an area where Costco has been improving.
Costco has invested in its digital capabilities, giving customers additional ways to browse products and shop beyond its physical warehouses.
The company reported record levels of digital engagement during fiscal 2026, according to comments from management on the earnings call.
Costco also highlighted strong engagement among its Executive members, who generally spend more than customers with its standard Gold Star membership.
Those trends matter because Costco wants its members to do more than sign up. It wants them to shop frequently, spend more over time, and renew their memberships year after year.
Attracting younger customers could help Costco sustain that pattern, particularly as those new members move through different stages of life, from living independently to raising families and buying homes.
Younger members present an opportunity and a challenge
Attracting younger shoppers does not automatically guarantee long-term loyalty for Costco.
Younger shoppers may decide to join Costco out of curiosity or because they want to try a limited-time product, knowing full well that they can cancel their memberships for a refund at any time, thanks to Costco’s generous policy.
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Still, the company is hopeful that younger members will see the value in Costco and continue to give the company their business.
During the company’s most recent earnings call, Millerchip said Costco had been working on more targeted and relevant communications for members who signed up through digital channels.
Growing the membership base can help Costco generate additional fee revenue, but keeping those members engaged and encouraging them to renew is essential to sustaining that growth.
Costco has several advantages, including its value proposition, broad merchandise selection, and the appeal of discovering new products during warehouse visits.
The retailer’s challenge will be ensuring that younger customers see enough value to justify paying an annual fee, even when their budgets are tight or their shopping needs change.
But for now, Costco’s growing under-40 membership base is an encouraging sign.
Maurie Backman owns shares of Costco.
