Costco (COST) , the largest warehouse club in the U.S., has been gaining a leg up on its competitors as its membership numbers continue to grow rapidly.
During the first quarter of 2025, the number of Costco’s paid household members increased to 78.4 million, up 6.8% compared to last year.
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This comes at a time when Costco’s products and deals continue to go viral on social media platforms such as TikTok and Instagram.
Related: Costco quietly plans to offer a convenient service for customers
Costco’s U.S. comparable sales also spiked by 8.3% year-over-year during the quarter. This contributed to its net income of $1.7 billion, which is 2% higher than what it earned during the same quarter a year ago.
Costco even outperformed its competitors by drawing in higher levels of foot traffic during the quarter. While Costco’s foot traffic climbed by 6% year-over-year, Sam’s Club’s only increased by 2.7% and BJ’s spiked by 4%, according to recent data from Placer.ai.
A staff member speaks to a customer inside a Costco store.
Image source: VIEWpress/Getty Images
Costco to offer a wild new deal to members
As Costco welcomes new members to its warehouses, it reportedly plans to launch a generous new deal next week that targets members who are frustrated with their current phone plans.
According to a recent report from Costco Insider, Costco’s July 2025 Coupon Book will feature a deal that offers members $450 if they switch to T-Mobile (TMUS) and purchase/activate a new phone on either its Experience More or Experience Beyond plan.
Related: Costco quietly limits customer purchases of a beloved product
Members who switch from AT&T, Verizon, Xfinity, Spectrum, USCellular, Claro, or Liberty Puerto Rico will receive a $200 Costco Shop card and a $250 Virtual Visa prepaid card, equivalent to $450.
Customers can even stack the deal, meaning they can receive up to 12 $200 Costco Shop cards and a maximum of four $250 Visa cards if they add 12 lines to the account. The promotion is valid between June 18 and July 20.
T-Mobile recently suffered major loss after angering customers
Costco’s upcoming deal comes amid an exodus of T-Mobile phone customers after the provider implemented a series of price hikes.
The phone carrier revealed in its first-quarter earnings report for 2025 that the number of customers who cut their phone service increased by 5 basis points year-over-year.
Also, while T-Mobile added 495,000 new postpaid phone customers during the quarter, that number is 6% lower than the amount it welcomed during the same time period last year.
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During an earnings call in April, T-Mobile CEO Mike Sievert said the recent spike in churn is mainly due to consumers becoming more nervous about the state of the economy.
“So overall, you saw across the industry churn was just on the margin a little elevated, and I think there’s a number of dynamics there,” said Sievert during the call. “That probably has more to do with kind of macro questions than with competition. You know, I think there’s a certain element out there where people are in a time of uncertainty about the future, grabbing what they can afford now. And so you’re seeing [more customer] upgrades and switching.”
Amid this concerning trend, many consumers have been flocking to cable companies to sign up for phone plans.
Spectrum, Comcast, and Altice USA have added 886,000 new phone customers during the first three months of 2025, which is up from the 804,000 it added during the same time period last year, according to a recent report from MoffettNathanson.
