When times get tight consumers, at least the ones who still have discretionary income, still indulge themselves, but they find more affordable ways to do that.
A vacation may become a staycation and a night at Ruth’s Chris could turn into an evening at Chili’s. Maybe you opt to watch that new movie a few months later at home instead of splurging on a theater, but in most cases, people still find a way to treat themselves.
That trend has benefited Costco, according to comments from CFO Gary Millerchip during the chain’s third-quarter earnings call.
“Self care and wellness items performed extremely well during the quarter, including fragrances and hair and skin products in the health and beauty and small appliances departments,” he said.
Those strong results did not stop at everyday items.
“We also saw members wanting to splurge on higher value self care items where the quality and value is compelling. For example, we experienced almost 50% sales growth in saunas and massage chairs during the quarter,” he added.
Now, Costco has quietly added a trendy new beauty product to its shelves nationwide at a time when Ulta and Target have ended their partnership, and Sephora has been hurt by Kohl’s struggles.
Costco adds South Korean beauty brand
APR has brought its flagship Medicube brand to the warehouse.
“Medicube’s Zero Pore Pad 2.0, a skincare product designed to cleanse pores, will be available across the retailer’s U.S. stores,” CNBC reported.
The brand entered Ulta Beauty in August of 2025, Target in April, and Walmart in June of this year.
“APR is riding a broader K-beauty boom in the U.S. South Korea’s cosmetics exports are estimated to have reached a record $7 billion in the first half of 2026, up 27.3% from a year earlier, according to the country’s Ministry of Food and Drug Safety. The U.S. was the top destination, accounting for $1.45 billion, or 20.7% of total exports,” CNBC reported.
APR explained the Medicube product on its website.
“Dual textured facial pads infused with Salicylic Acid(BHA) + AHA + patented pore care ingredients to help exfoliate dead skin cells, clear sebum, and minimize the look of pores,” the company shared.
Costco grows its beauty lineup (and sales)
Mintel beauty and personal care expert Clare Hennigan shared what she called a look “Inside My Algorithm” in a post on her company’s website.
“While Costco has long carried beauty products (I distinctly remember my sisters and me receiving the jumbo multi-pack of Neutrogena Makeup Remover every Christmas during my teen years!), the warehouse club has gradually expanded its beauty assortment over time — tapping into K-beauty trends and increasing its prestige offerings,” she wrote.
She also shared some numbers that show the warehouse club has significant reach in the space and has been reaching higher-income shoppers.
21% of U.S. beauty and personal care shoppers have purchased products at a warehouse club store in the past year, a figure that rises to 25% among households with an income of $100k or more.
Some of the chain’s growth in the space, she noted, has been driven by social media.
“Both TikTok and Reddit are hot spots for Costco content. The subreddit ‘r/Costco’ boasts an impressive 1.5 million members, far surpassing other retailer subreddits like ‘r/samsclub’ (63k), ‘r/aldi’ (275k), and ‘r/walmart’ (362k), highlighting the strength of its online community and the virality of beauty deals,” she wrote.
Millerchip sees self-care and beauty as areas of affordable indulgence for members.
“I mentioned some of the self care items that we are selling in health and beauty and small appliances. They are really the areas where I see, you know, members taking advantage of some opportunities to treat themselves at great values,” he said.
More Costco:
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Discontinued Costco member favorite returns to shelves
Costco’s new service beats Amazon at its own game
Consumers prize value, Hennigan wrote, sharing some Mintel data.
“When consumers are asked what factors influence where they shop for BPC products, the most common response is ‘affordability’ (57%), followed by ‘a wide range of products’ (45%). As the cost-of-living crisis continues, affordability will likely play an even larger role in influencing shopping behaviors. Expect even more premium/luxury brands to offer limited edition, Costco-exclusive value sets to appeal to warehouse shoppers,” she wrote.
Costco has slowly grown its beauty and self-care business.Shutterstock
Costco’s beauty changes are being noticed
Phoenix, Ariz., dermatologist Dr. Karan Lal, who is a Costco member, told New Beauty in 2024 that he noticed a shift as the big-box warehouse club retail store upped its beauty game in a big way.
“They have some really good skin care right now,” Lal said. “Personally, I think it’s great for families, because you can get some good deals on great products.”
Discover Night CEO Kalle Simpson, whose company focuses on nighttime beauty, believes that Costco knows exactly which beauty products to stock.
“Costco has a great pulse on what their customer is interested in; allowing us to provide unique beauty offerings that surprise and delight,” she told Beauty Matter.
The warehouse club is using beauty and self-care to turn the treasure hunt into an increasingly premium experience.
“Costco is quietly expanding its role in beauty while attracting a growing mix of brands across skincare, wellness, suncare, and K- and J-beauty. Rather than functioning as a traditional wholesale outlet, Costco appears to be positioning itself as a different kind of beauty channel altogether,” Beauty Matter’s Tatiana Pile wrote.
Costco fills a market need
Costco is meeting a growing trend.
Beauty spending in 2026 is being reshaped less by outright cutbacks and more by precision, according to the Alvarez & Marsal Consumer Sentiment Spring 2026 Report.
Consumers are still willing to spend, but they expect something in return.
“Across the category, 43% of consumers have simplified their beauty routines, but simplification is not translating into blanket downtrading. Instead, spending is concentrating,” the study showed.
Data from Circana backed up the concept that consumers are spending on beauty, but being careful with their dollars.
“Mass market beauty continues to gain momentum in the U.S. as consumers seek high-performing products at accessible price points,” Circana reported.
The research showed that shoppers are looking for value.
“In skincare, masstige brands — or those offering premium benefits at mass prices — are delivering double-digit growth, enabling mass skincare to outperform prestige in terms of both dollar and unit sales. These results reflect a broader consumer shift toward efficacy without premium pricing, with mass retailers increasingly offering elevated options that meet these expectations,” according to the research firm.
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