25% of Shoppers Can’t Afford Bulk Buys—Ramsey Warns Costco Risks Food Waste

For retailers like Costco, the bulk-buying imperative is under threat. Dave Ramsey’s warning that perishable items should be avoided at warehouse clubs could alter consumer habits, shrinking basket sizes and reducing trip frequency. With Bank of America reporting that 25% of consumers were living paycheck to paycheck as of late 2025, the message that bulk doesn’t always equal savings could drive a wedge into Costco’s value proposition, pressuring membership renewals and same-store sales.

Dave Ramsey, the personal finance guru, has issued a cautionary note for Costco shoppers: buying perishable items in bulk can be a costly mistake. His warning, disseminated via Ramsey Solutions, specifically targets fresh produce, dairy, condiments, and spices—items that often spoil before a household can finish them. This advice comes at a time when nearly 25% of U.S. consumers were living paycheck to paycheck as of late 2025, according to Bank of America. For these households, the upfront cost of bulk purchases is already a barrier, but even for those with more financial flexibility, the potential for food waste can erode the cost-per-unit advantage that warehouse clubs like Costco offer.

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Shelling out $15 for a 24-pack of yogurt might seem like a bargain compared to $0.80 per cup at a convenience store, but if the upfront outlay strains a tight budget—or the family can’t consume it all—it’s a losing proposition.

Costco’s business model is built on the premise that selling large quantities at low margins drives customer loyalty and membership renewals. The average Costco member visits roughly every two weeks, spending well over $100 per trip, with perishables often comprising a significant portion of the basket. If a shopper heeds Ramsey’s warning and scales back on bulk produce or dairy purchases, the retailer could see a decline in both trip frequency and average transaction size. This dynamic matters because Costco generates the bulk of its profit from membership fees, not product sales; any shift that reduces perceived value could eventually pressure renewal rates.

The food waste angle is not new. The USDA estimates that 30-40% of the U.S. food supply goes uneaten, costing an average family of four about $1,500 annually. For smaller households—singles and couples—the risk of waste magnifies when buying at Costco, where packaging is designed for families of five or more. A single person might save $0.50 per pound on a 5-pound bag of spinach compared to a grocery store, but if half goes bad, they’ve effectively paid full price—or more. Ramsey’s advice aligns with a growing consumer trend toward mindful spending, driven by high inflation and lingering economic uncertainty. In a retail environment where consumers are increasingly comparison shopping and turning to discounters like Dollar Tree, Costco must balance its value proposition against the reality that not every item is a deal for every household.

The categories Ramsey highlighted—fruits, vegetables, dairy, condiments, and spices—are particularly tricky because their shelf lives are unpredictable. A giant tub of sour cream might last two weeks, but a bulk bag of avocados can go from perfect to overripe in a day. Spices might seem shelf-stable, but Ramsey notes they lose flavor over time, meaning the last quarter of that jumbo jar could end up unused. This advice could nudge shoppers to shift their perishable purchases to traditional grocery stores or smaller-format retailers, where they can buy smaller quantities more frequently. For Costco, that’s a threat not just to top-line sales but to the very habit of the weekly warehouse run—a habit that marketing campaigns have spent decades cultivating.

The Bank of America statistic underscores why this warning has weight. When nearly one in four consumers has little to no financial cushion, the calculus of buying in bulk changes. Shelling out $15 for a 24-pack of yogurt might seem like a bargain compared to $0.80 per cup at a convenience store, but if the upfront outlay strains a tight budget—or the family can’t consume it all—it’s a losing proposition. Retailers like Costco have responded to cost-conscious shoppers by expanding their private-label Kirkland Signature line and emphasizing rotisserie chickens and food courts as loss leaders, but Ramsey’s advice suggests they need to do more to educate members on smart bulk shopping. Some locations have experimented with “freshness guarantee” policies and smaller pack sizes, but the warehouse format inherently limits how small items can go.