Shoppers turn to warehouse stores as grocery bills climb
Products are displayed in boxes at an Emart Traders warehouse store in this undated photo. Courtesy of Emart
For Kim Eun-young, a 42-year-old mother of two living in Seoul’s Gwangjin District, a monthly trip to Costco has become routine this year. She used to pick up what she needed at a nearby supermarket, but rising prices prompted her to change her shopping habits.
She said buying groceries and household essentials in bulk seems more economical, at least for her family of four.
“The bill is bigger each time, but buying in bulk works out cheaper for the same amount,” Kim said. “I mainly buy food we eat regularly and everyday household essentials, and divide the food into meal-sized portions for storage.”
Kim’s changing habits reflect a growing appetite for warehouse shopping as consumers seek relief from high prices.
According to market tracker WiseApp Retail, combined estimated card spending at Costco and Emart Traders totaled a record 1.45 trillion won ($1.09 billion) in September.
The estimates are based on a sample of Korean consumers’ credit and debit card payments. They exclude cash and bank transfers and therefore differ from the retailers’ reported revenue.
Warehouse retailers keep prices competitive by buying a limited selection of products in large quantities. Concentrating orders on popular goods, rather than carrying numerous brands and sizes, helps them secure lower purchasing prices. Selling large packages and displaying merchandise in boxes or on pallets further reduce operating costs.
Private labels also help keep prices down. By developing goods with manufacturers and selling them under their own brands, retailers can reduce distribution and marketing expenses and pass on savings to shoppers.
Costco’s Kirkland Signature range spans groceries, dietary supplements, apparel and household supplies. The retailer participates in product development and oversees aspects of manufacturing to control costs while maintaining quality.
At Traders, the T Standard brand works with manufacturers throughout product development, from initial planning to launch. Savings on design and promotional spending help the chain offer lower retail prices.
The growing appeal of warehouse shopping is also reflected in financial results.
Costco Korea’s revenue rose 12.1 percent to a record 7.32 trillion won in fiscal 2025, which ran from September 2024 through August 2025. That followed sales of 6.07 trillion won in fiscal 2023 and 6.53 trillion won in fiscal 2024.
Traders has likewise recorded gains in both sales and profit. Its annual gross sales rose from 3.37 trillion won in 2023 to 3.55 trillion won in 2024 and 3.85 trillion won in 2025.
Sales grew 14.2 percent over the two years, while operating profit more than doubled from 58.1 billion won to 129.3 billion won.
“Spending at warehouse retailers is growing among major retail formats, including hypermarkets, department stores and convenience stores,” an industry official said. “Their focus on bulk products appears to be attracting grocery shoppers trying to manage the burden of high prices.”