Costco vs. WinCo: Which Is Better for Groceries?

WinCo is a discounted grocery store that gives shoppers the option of buying dry goods, like grains and cereals, in bulk. Located in the Western U.S., WinCo is a very different kind of grocery store than Costco, but begs comparison for those looking for the cheapest groceries. Let's take a closer look at both stores and see which one might be best for your personal finances.

Price comparison

WinCo doesn't charge a membership fee, which gives it a leg up on Costco -- whose annual membership costs $60 or $120. But aside from membership dues, whose groceries are cheaper?

I went out to a local WinCo and compared prices with my Costco warehouse. Here's what I found for eight grocery items:

Costco's prices are competitive but WinCo beats the wholesaler for most items, sometimes by wide margins. That said, Costco is cheaper for most cleaning supplies and toiletries, especially paper towels and toilet paper. But if you're looking for the cheapest all-around grocery store, WinCo may be your place.

Variety of products

WinCo stores are slightly smaller than Costco's warehouses but are stocked with roughly 23,000 SKUs. The store has so many products, in fact, most stores will offer you a map upfront to help you navigate the aisles.

Costco has significantly fewer products -- roughly 4,000 SKUs -- but offers a greater variety of services and non-grocery items, like tires, smartphones, clothes, eyecare services, appliances, laptops, even getaway vacations.

On the other hand, WinCo has an impressively diverse bulk dry foods section. If you're familiar with Costco, this can be misleading, as the foods here don't necessarily come in bulk quantities. Rather, the section is divided into self-service aisles of dry foods which you can measure out of dispensers into bags and containers. These goods include beans, cereals, coffee, flour, granola, grains, lentils, mixes (like pancake and muffin), nuts, oats, oils, pasta, rice, spices, tea, and yeast.

The price of these items is on par or lower than Costco. This gives you the best of both worlds: cheap prices for buying in bulk, plus the convenience of measuring out how much you want to use.

Finally, WinCo offers more variety in its produce section. The company sells basic vegetables, like bell peppers and carrots, in reasonable quantities, as well as produce you might not find at Costco, like dragon fruit, papaya, coconuts, and cactus leaves.

Accessibility

Costco is available to more American shoppers than WinCo. With 589 stores in the U.S. and a presence in all states and territories except Maine, Rhode Island, West Virginia, and Wyoming, Costco is statistically more likely to have a store location near you than any of WinCo's 139 stores. Currently, WinCo has stores in 10 states, including:

• Arizona
• California
• Idaho
• Montana
• Nevada
• Oklahoma
• Oregon
• Texas
• Utah
• Washington

WinCo does have a leg up in its hours. Most WinCo stores are open 24/7. This can be convenient for grocery shoppers whose schedules don't align with Costco's closing hours, which are typically between 8:30 and 9:30pm.

Payment

Winco doesn't accept credit cards, only cash and debit. This helps it keep prices low by avoiding credit card transaction fees. That might help you save, but if you like earning rewards with the top grocery cash back cards, WinCo will only wag its finger.

Costco isn't perfect in this regard, as it only accepts Visa credit cards, which eliminates roughly 47.2% of credit cards in circulation. But if you have a Visa credit card -- like the Costco Anywhere Visa® Card by Citi -- you can charge purchases to your card and potentially earn rewards.

Costco vs. WinCo: which one should you choose?

If you have a WinCo and a Costco near you, I would use both to your advantage. WinCo has lower prices for most groceries, sells items in small quantities, and lets you measure out dry goods. Conversely, Costco's toiletries are cheaper and buying in bulk means fewer trips to the grocery store and potentially saving money on gas. Striking a balance between the two could mean saving more on grocery bills, and you could get items at one that you simply can't find at the other.