<\/p>\n
When times get tight consumers, at least the ones who still have discretionary income, still indulge themselves, but they find more affordable ways to do that.<\/p>\n
A vacation may become a staycation and a night at Ruth’s Chris could turn into an evening at Chili’s. Maybe you opt to watch that new movie a few months later at home instead of splurging on a theater, but in most cases, people still find a way to treat themselves.<\/p>\n
That trend has benefited Costco, according to comments from CFO Gary Millerchip during the chain’s third-quarter earnings call.<\/p>\n
“Self care and wellness items performed extremely well during the quarter, including fragrances and hair and skin products in the health and beauty and small appliances departments,” he said.<\/p>\n
Those strong results did not stop at everyday items.<\/p>\n
“We also saw members wanting to splurge on higher value self care items where the quality and value is compelling. For example, we experienced almost 50% sales growth in saunas and massage chairs during the quarter,” he added.<\/p>\n
Now, Costco has quietly added a trendy new beauty product to its shelves nationwide at a time when Ulta and Target have ended their partnership, and Sephora has been hurt by Kohl’s struggles. <\/p>\n
Costco adds South Korean beauty brand<\/p>\n
APR has brought its flagship Medicube brand to the warehouse. <\/p>\n
“Medicube’s Zero Pore Pad 2.0, a skincare product designed to cleanse pores, will be available across the retailer’s U.S. stores,” CNBC reported.<\/p>\n
The brand entered Ulta Beauty in August of 2025, Target in April, and Walmart in June of this year.<\/p>\n
“APR is riding a broader K-beauty boom in the U.S. South Korea’s cosmetics exports are estimated to have reached a record $7 billion in the first half of 2026, up 27.3% from a year earlier, according to the country’s Ministry of Food and Drug Safety. The U.S. was the top destination, accounting for $1.45 billion, or 20.7% of total exports,” CNBC reported.<\/p>\n
APR explained the Medicube product on its website.<\/p>\n
“Dual textured facial pads infused with Salicylic Acid(BHA) + AHA + patented pore care ingredients to help exfoliate dead skin cells, clear sebum, and minimize the look of pores,” the company shared.<\/p>\n
Costco grows its beauty lineup (and sales)<\/p>\n
Mintel beauty and personal care expert Clare Hennigan shared what she called a look “Inside My Algorithm” in a post on her company’s website.<\/p>\n
“While Costco has long carried beauty products (I distinctly remember my sisters and me receiving the jumbo multi-pack of Neutrogena Makeup Remover every Christmas during my teen years!), the warehouse club has gradually expanded its beauty assortment over time — tapping into K-beauty trends and increasing its prestige offerings,” she wrote.<\/p>\n
She also shared some numbers that show the warehouse club has significant reach in the space and has been reaching higher-income shoppers.<\/p>\n
21% of U.S. beauty and personal care shoppers have purchased products at a warehouse club store in the past year, a figure that rises to 25% among households with an income of $100k or more. <\/p>\n
Some of the chain’s growth in the space, she noted, has been driven by social media.<\/p>\n
“Both TikTok and Reddit are hot spots for Costco content. The subreddit ‘r\/Costco’ boasts an impressive 1.5 million members, far surpassing other retailer subreddits like ‘r\/samsclub’ (63k), ‘r\/aldi’ (275k), and ‘r\/walmart’ (362k), highlighting the strength of its online community and the virality of beauty deals,” she wrote.<\/p>\n
Millerchip sees self-care and beauty as areas of affordable indulgence for members.<\/p>\n
“I mentioned some of the self care items that we are selling in health and beauty and small appliances. They are really the areas where I see, you know, members taking advantage of some opportunities to treat themselves at great values,” he said.<\/p>\n
More Costco:<\/p>\n
Costco keeps discontinuing popular products<\/p>\n
Discontinued Costco member favorite returns to shelves<\/p>\n
Costco’s new service beats Amazon at its own game<\/p>\n
Consumers prize value, Hennigan wrote, sharing some Mintel data.<\/p>\n
“When consumers are asked what factors influence where they shop for BPC products, the most common response is ‘affordability’ (57%), followed by ‘a wide range of products’ (45%). As the cost-of-living crisis continues, affordability will likely play an even larger role in influencing shopping behaviors. Expect even more premium\/luxury brands to offer limited edition, Costco-exclusive value sets to appeal to warehouse shoppers,” she wrote.<\/p>\n
Costco has slowly grown its beauty and self-care business.<\/p>\n
Shutterstock<\/p>\n
Costco’s beauty changes are being noticed<\/p>\n
Phoenix, Ariz., dermatologist Dr. Karan Lal, who is a Costco member, told New Beauty in 2024 that he noticed a shift as the big-box warehouse club retail store upped its beauty game in a big way.<\/p>\n
“They have some really good skin care right now,” Lal said. “Personally, I think it’s great for families, because you can get some good deals on great products.”<\/p>\n
Discover Night CEO Kalle Simpson, whose company focuses on nighttime beauty, believes that Costco knows exactly which beauty products to stock.<\/p>\n
“Costco has a great pulse on what their customer is interested in; allowing us to provide unique beauty offerings that surprise and delight,” she told Beauty Matter.<\/p>\n
The warehouse club is using beauty and self-care to turn the treasure hunt into an increasingly premium experience.<\/p>\n
“Costco is quietly expanding its role in beauty while attracting a growing mix of brands across skincare, wellness, suncare, and K- and J-beauty. Rather than functioning as a traditional wholesale outlet, Costco appears to be positioning itself as a different kind of beauty channel altogether,” Beauty Matter’s Tatiana Pile wrote.<\/p>\n
Costco fills a market need<\/p>\n
Costco is meeting a growing trend.<\/p>\n
Beauty spending in 2026 is being reshaped less by outright cutbacks and more by precision, according to the Alvarez & Marsal Consumer Sentiment Spring 2026 Report.<\/p>\n
Consumers are still willing to spend, but they expect something in return.<\/p>\n
“Across the category, 43% of consumers have simplified their beauty routines, but simplification is not translating into blanket downtrading. Instead, spending is concentrating,” the study showed.<\/p>\n
Data from Circana backed up the concept that consumers are spending on beauty, but being careful with their dollars.<\/p>\n
“Mass market beauty continues to gain momentum in the U.S. as consumers seek high-performing products at accessible price points,” Circana reported.<\/p>\n
The research showed that shoppers are looking for value.<\/p>\n
“In skincare, masstige brands — or those offering premium benefits at mass prices — are delivering double-digit growth, enabling mass skincare to outperform prestige in terms of both dollar and unit sales. These results reflect a broader consumer shift toward efficacy without premium pricing, with mass retailers increasingly offering elevated options that meet these expectations,” according to the research firm.<\/p>\n
ALSO READ: Kohl’s has one last idea after 18 straight losing quarters<\/p>\n
#Costco #quietly #builds #beauty #business #rival #Ulta #Sephora<\/p>\n","protected":false},"excerpt":{"rendered":"
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