Cash and carry firms such as Costco promise lower prices and are attracting a growing army of devotees, some of whom say you can save hundreds of pounds on your shopping.
So is it time to fill up your car boot with multipacks to beat the cost of living crisis? Are these savings real? Will they let you through the doors?
The Guardian decided to go shopping at two of the best-known cash and carry wholesalers: Costco and Booker. It is fair to say we found plenty of bargains: Andrex toilet paper 30% cheaper than Tesco; bottles of Heineken beer priced 20% less than Asda and Morrisons; a giant Samsung TV for almost half the price charged by John Lewis.
We began our price survey with a number of misgivings. Do you really want to spend your weekend in a sprawling shed cramming 48 packs of kitchen roll into the car, just to save a few pounds?
Photograph: LDNPix/Alamy
However, we came away thinking that maybe it might just be worthwhile, so long as (a) you have a car; (b) you have somewhere to store a three-month supply of bog roll; and (c) you have the money to pay upfront.
There is also the small question of whether you will be allowed to join the club.
What our price survey found
Yes, prices were almost always lower. But this was just a snapshot of prices on any one given day, and it comes with a number of caveats.
First, we could only compare branded goods. For example, we found Head & Shoulders was significantly cheaper at the warehouses compared with the high street supermarkets. But if you really want to save on anti-dandruff shampoo, you would buy the non-branded option, such as Cien at Lidl, for less than half the price.
Second, the Head & Shoulders product might be 20% cheaper but you could not just buy one – you had to buy a minimum of six bottles. So you are poorer now, to save over the longer term. Many shoppers on extremely tight weekly budgets do not have the cash to buy in bulk.
We also could not compare Costco with Booker because neither seemed to stock the same items, or they offered different unit sizes – and Booker really is trade-only.
So is it easy to join Costco and Booker?
No, especially not Booker.
Costco has 29 outlets around the UK, including several in the London and M25 area (including in Wembley, Chingford, Hayes, Watford, Sunbury and Croydon), and locations such as Manchester, Leeds, Liverpool, Birmingham, Milton Keynes, Reading, Bristol, Southampton, Cardiff, Edinburgh and Glasgow.
Costco charges £33.60 annually for individual membership, and that is only if you qualify.
You have to be a current or retired employee in one of the categories on Costco’s list of qualifying employment groups, although it is a wide range: from banking and finance to education, the civil service and health service, plus nearly all “professional” groups such as accountants and engineers.
You will need to show your employee ID card or payslip or pension statement, plus a piece of photographic identification.
Booker is an altogether tougher proposition. Its terms and conditions are quite clear that it is “a trade-only wholesaler and is not open to the general public”.
To get a Booker card, you have to be a VAT-registered business, self-employed or a registered charity. Its terms and conditions state that you have to be a bona fide trader, and that goods bought are for resale. They will also ask for two proofs of business when you register at your local branch. Makro and Booker appear to have near-identical terms and conditions.
What if the business you work for has a Booker account? Unfortunately, personal use of the Booker cash and carry card is strictly prohibited.
That said, there are now 5 million self-employed people in the UK, and among them there will be many who could register with Booker.
The pros and cons of bulk buying
If you have a large family and lots of cupboard space, then bulk buying can make sense.
But as we found in our survey, the biggest savings are on branded goods – if you stick to supermarket own-brands, it is unlikely you will save much at the warehouses.
Buying perishables and fresh food in bulk makes little sense unless you have particularly voracious teenagers. Some of Booker’s deals did not appear to be good value: a 10kg bag of “farm fresh” carrots was £5.99, which is an awful lot of carrots when you could buy a 1kg bag at Tesco for 45p.
UK households throw out about 4.5m tonnes of food waste a year, equal to £700 for an average family with children. Buying less but more frequently is probably a better way to save on fresh food.
Prices may not include VAT but do come with POR and RRP
Beware shelf stickers that make items look especially attractive – Booker’s prices are initially quoted without VAT, as they are aimed at business buyers.
For example, for the four-pack of Andrex Classic Clean nine rolls, the price was quoted at £13.25 first, then £15.90 including VAT.
The packs sold at Booker came with a prominently displayed recommended retail price (RRP) of £5.49. So if you are popping into a local convenience store, you can work out that they are making a margin of £1.52 a pack.
Indeed, Booker’s price lists include a figure for POR, which stands for profit on return and tells the retailer what margin they will make if they sell the item at the RRP. Most PORs appeared to start at 20% but we found plenty at significantly higher margins: Mars bars at 30%, McVitie’s Digestives at 40% and Diet Coke at 55%.
The secret’s out
It would appear that growing numbers of people are signing up to Costco to see if it can save them money. Go on social media and you will see that some people have been reporting queues of traffic outside some outlets, and of people waiting to get in, as well as crowded aisles inside, particularly at weekends.
Nevertheless, there are some happy punters out there.
“Went n got a @CostcoUK card didn’t I? Trip there today and came home with a massive pizza (like, it won’t even fit in the oven), massive honey, some pistachio spread (that’s amazing btw) loads of bacon, avocados, chorizo and coffee pods. That place is amazing,” tweeted one user just over a week ago.
Another tweeted last Sunday: “Note to self. Never, ever go to @CostcoUK in #traffordpark on a Sunday lunchtime. Especially if you need member services. On the bright side I’m £400 better off.”
Costco prices
Andrex Supreme Quilts, pack of 16 rolls
Costco £7.26 (minimum purchase pack of six, £43.58).
Asda £10.40.
Tesco £10.40.
Sainsbury’s £8.50.
Morrisons £10.40.
Amazon £11.15.
Conclusion Costco is 30% cheaper than Tesco, Asda and Morrisons. And, as we found with several items, Amazon does not score particularly highly for everyday groceries and household goods.
Barefoot Pinot Grigio
Costco £6.49 (minimum purchase pick and mix 12, £77.88).
Asda £6.
Tesco £6.75.
Sainsbury’s £7.
Morrisons £6.
Amazon £6.75.
Conclusion A disappointing result – it was cheaper to buy in Asda and Morrisons, with no requirement to bulk-buy. Note that the Costco prices quoted here are for delivery – Costco charges £5.99 an order for groceries, with no minimum spend required.
Samsung 75 Inch Neo QLED 4K Ultra HD Smart TV
Costco £1,799.98.
John Lewis £3,249 (includes five-year warranty).
Argos £2,799.
Currys £2,799.
Amazon Not available.
Conclusion Buyers at Costco are clearly picking up a massive discount compared with the same telly in John Lewis or Argos – saving at least £1,000. But if saving money is your priority, then it is possible to buy a Samsung 75in QLED HDR 4K Ultra HD Smart TV, 2022 model, from John Lewis for £1,599. Or, if you forgo QLED for crystal, then Argos has a Samsung 75in for £799.
Booker prices
Andrex Classic Clean nine rolls
Booker £3.97 (minimum pack of four, £15.90).
Tesco £5.60.
Sainsbury’s £5.
Morrisons £5.
Asda Not available (Andrex Gentle Clean nine rolls £4.10).
Amazon £4.85.
Conclusion Booker was the clear winner, with a significantly lower price: 29% less than Tesco and 21% less than Sainsbury’s and Morrisons. Booker is owned by Tesco, so it is surprising that Tesco were the most expensive for this item.
Heineken 12 x 330ml
Booker £9.59. No minimum purchase.
Tesco £12.
Asda £12.45.
Sainsbury’s £12.
Morrisons £12.50.
Conclusion This item was on special offer at Booker but represented a significantly cheaper price than all the big supermarket chains and, unusually, buyers do not have to buy extra cases.
Head & Shoulders Classic 225ml
Booker £2.37, minimum case of six £14.27.
Boots £2.99.
Sainsbury’s £2.50.
Morrisons £3 (two for £5).
Asda £2.50.
Tesco not available.
Conclusion Booker was again the winner – but only mildly so: it was 5% cheaper than Sainsbury’s or Asda but you have to buy six. Aldi’s anti-dandruff shampoo, Lacura, is half the price, £1.15, for twice the volume (500ml).
• All prices correct at the time of writing.
