High-Income Shoppers Boost Costco Share as Protein Sales Surge Sparks Whey Shortage
COST•Dollar General said high-income households (>$100k) are shifting spend to Costco and Walmart, boosting those wholesalers over premium-priced retailers. Costco reported record protein item sales as GLP-1 drug-driven demand fuels a looming whey shortage, pushing the company to stock up.
1. Gaining High-Income Shopper Market Share
In recent commentary, Dollar General executives highlighted that households earning over $100,000 per year are increasingly shopping at Costco and Walmart. This shift is helping those wholesalers capture market share from more premium-priced retailers as high-income consumers seek value and convenience.
2. Protein Sales Surge and Supply Constraints
Costco reported record sales of protein-packed items, driven by consumer demand for products compatible with GLP-1 treatments. The surge in protein purchases has strained whey supplies, prompting the company to bolster inventory levels and explore additional sourcing to meet growing demand.
