Is Costco for Rich People Now?

Since the early 1980s, Costco has catered to budget-minded customers thanks to its wholesale model and reasonable, membership-only prices on all kinds of goods, from groceries to clothing, furniture and more.

When you think of Costco, the first thing that likely comes to mind is its low prices and deals. But not everyone who shops at Costco is doing so because they have to stay well within their means.

In recent years, wealthy, upper-class customers have begun to splurge on some of their luxury goods directly through the big-box retailer.

READ MORE: Why Does Costco Only Accept Visa Credit Cards?

While working-class and middle-class families have continued to tighten their spending habits amid inflation, stagnant wages and rising costs of living, it turns out the rich have actually been spending more—with some even turning to discount chains to get more bang for their buck, now that the top 10 percent of earners in the U.S. (who make $250,000 or more) account for nearly 50 percent of spending.

In turn, many retailers, including discount and members-only chains, are now paying more attention to and even chasing after rich customers.

According to Fast Company, some of the high-end products now being offered at Costco and purchased by wealthy members include high-quality diamonds, Rolex watches, gold and platinum bars, Apple products, designer handbags, Porsches and bottles of Dom Pérignon champagne, to name just a few.

In fact, these expensive, luxurious items are often snatched up quickly, if you can believe it.

“Affluent people love a good deal,” Costco chair Hamilton James said in an interview earlier this year, touting the success of the retailer’s offering of luxury goods among the store’s more well-to-do clientele.

But Costco didn’t target the wealthy overnight. The chain has boasted a somewhat more upscale image compared to competitors such as Sam’s Club and BJ’s for years, attracting affluent members in the process.

According to Investopedia, over 50 percent of Costco shoppers are considered “affluent,” while 36 percent are high-income earners with an annual salary of more than $125,000.

“Costco’s reputation for serving that somewhat higher-income demographic makes the chain more attractive to brands that target those shoppers as well,” financial analyst Zain Akbari told CNBC, while Yahoo! Finance reports that exclusivity has played a big role in the chain's appealing image as a "premier shopping destination."

As for the rest of us shoppers with a budget, the hyper-wealthy can keep their designer bargains for themselves. In this economy, we’ll happily take the bulk carton of Kirkland Signature eggs over a bottle of Dom bubbly any day.