Costco vs. HEB: Which Store Has Better Prices?

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KEY POINTS

  • Costco generally has cheaper prices than HEB, a grocery and convenience store chain primarily based out of Texas and Mexico.
  • HEB carries more products than Costco, however.
  • Costco only carries about 4,000 SKUs (stock keeping units) compared to the 30,000 found at most supermarkets like HEB.

Finding the best deals at the grocery store can be a daunting task. With so many options available, it's easy to become overwhelmed and unsure of where to shop to get the most bang for your buck. Two popular grocery stores are Costco and HEB, but which one provides better prices per item? We conducted a comparison between these retail giants to help you make an informed decision on where to shop.

Costco

Costco is known for being a wholesale retailer that offers bulk items for businesses and families. Costco requires a membership to shop, but when it comes to pricing, Costco tends to have lower prices per unit compared to HEB.

This is because you are purchasing items in bulk. While it may initially seem like you are spending more at Costco, you are getting more value for your money in the long run as long as you use all of the products. Overall, Costco is a great option for those who can afford to stock up on items in larger quantities.

HEB

HEB, on the other hand, is a grocery store and convenience store chain with over 430 stores in Texas and Mexico. Under the HEB umbrella of stores is HEB Plus, HEB Convenience Stores, and Mi Tienda. Unlike Costco, there is no membership fee to shop here. One of the advantages of shopping at HEB is that it offers a wide variety of products, from food to apparel and electronics.

HEB and Central Market recently launched the H-E-B Visa Signature® Credit Card and Central Market Visa Signature® Credit Card. Both cards have no annual fee and offer customers unlimited cash back on groceries and everyday purchases. Members get 5% cash back on products in the H-E-B family of brands and 1.5% cash back on all other purchases.

Costco offers members the Costco Anywhere Visa® Card by Citi, which allows cardholders to earn Costco cash rewards anywhere Visa is accepted. Costco members can receive 4% rewards on eligible gas (on the first $7,000 per year and then 1% after), 3% on restaurants and eligible travel, 2% on all other purchases from Costco and Costco.com, and 1% for all other purchases.

In addition to its rewards, Costco's card also offers certain advantages, such as complimentary purchase protection, travel insurance, and no foreign transaction fees.

Grocery price comparison

Product Costco HEB
Bananas $0.46 / lb $0.53 / lb
Kellogg's Frosted Flakes $0.17 / oz $0.19 / oz
Coca-Cola Classic Coke 12 oz Cans $0.05 / oz $0.05 / oz
Jack Link's Beef Sticks $0.82 / ct $1.12 / ct
Oreo Cakester $0.38 / oz $0.42 / oz
Bacon $3.70 / lb $6.88 / lb
Data source: Costco and HEB.

When it comes to quality and pricing, both Costco and HEB excel in different ways. However, if we were to compare prices side by side, it appears as though Costco may be the winner, thanks to lower prices for items bought in bulk.

However, when it comes to the number of items available, HEB has a slight edge over Costco. This is because grocery stores like HEB offer a wider selection of brands. Costco only carries about 4,000 SKUs (stock keeping units) compared to the 30,000 found at supermarkets like HEB.

When deciding between shopping at Costco or HEB, it ultimately comes down to your needs. If you regularly purchase items in bulk and are willing to pay the membership fee, then Costco may be your best option. However, if you live in Texas and don't want to spend the extra money on a Costco membership, then HEB may be the way to go. Regardless of where you choose to shop, both Costco and HEB offer great options to help you save money on your grocery bill. Be sure to compare prices and take advantage of sales and discounts to get the most value for your money.

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