A rising tide may lift all boats, but rising gas prices only lift a few.
Costco is increasingly looking like a winner during this round of high fuel costs as US consumers look for ways to balance their weekly budgets.
The US average price of a gallon of regular gas has remained above $4 for a month — topping $4.50 this week — leading more drivers to fill up at warehouse clubs like Costco.
Those numbers are translating into a top-line boost for Costco, which saw 11.7% US comparable sales growth last month, of which 3 percentage points were from fuel sales.
US shoppers are increasingly changing up their habits: A survey from Numerator, shared this week with Business Insider, found that more than nine out of 10 drivers took one or more steps to save money on gas in the past month.
The share of drivers who filled up at club stores increased by three points to 36% compared with the April release of the data, and the share of drivers using fuel rewards credit cards ticked up four points to 27%.
In addition, roughly half of those surveyed said they were using a loyalty program or app, and about a third were choosing where to fill up based on price rather than location. Those rates were within two points of last month’s numbers.
Three-quarters of respondents also said fuel costs were leading them to cut spending in other areas, like restaurants, travel, and entertainment.
One area they don’t appear to be cutting back: Costco.
Increased traffic at the pump is also drawing customers into the store, where sales are up. Costco reported a 3.8% increase in US visits in the four weeks ending May 3, with 8% higher non-gas transactions compared to the same four-week period last year.
And recent foot traffic data from Placer.ai for the final week of April showed club stores outpacing every other retailer category in year-over-year visits.
An employee at a newer Costco location in Texas told Business Insider that roughly 80% of customers at their 32-pump gas station also shop the warehouse on the same day.
Costco also tends to have a more affluent customer base than other major retailers, which could be giving it a further boost as fuel prices drive a wider split in the K-shaped economy.
A report released this week by the Federal Reserve Bank of New York found that higher-income households were still buying gas at a steady rate, while lower-earning ones were curbing the number of gallons they bought.
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