If you’re tired of paying those annual membership fees just to save money on groceries, there’s actually a warehouse store that doesn’t charge you anything to walk through the door. And honestly, most people haven’t even heard of it unless they live out West. WinCo Foods has been quietly undercutting the big guys like Costco and Sam’s Club for years now, but they don’t advertise much so they’ve stayed pretty under the radar.
No membership fees required at all
Right when you walk into WinCo Foods, you’re already saving money because there’s no membership fee. I mean, think about what you’re paying at the other places. Costco charges $65 or $130 annually depending on which tier you want, and they just raised those prices in 2024. Sam’s Club isn’t much better at $50 or $110 per year, and they increased their fees back in late 2022. That membership cost adds up fast, especially if you’re not shopping there constantly throughout the year.
But WinCo doesn’t require any of that. You just show up and shop. The savings start immediately, which is basically the whole point of going to a warehouse store in the first place. Why pay money upfront just to access deals?
They cut out the middleman completely
WinCo keeps their prices low by buying directly from manufacturers and farms instead of going through distributors. That’s a huge difference. When you eliminate that middleman markup, the savings get passed straight to customers. And it’s not just one or two items either – we’re talking about their entire inventory being priced lower because of this approach.
The store also doesn’t spend money on advertising or marketing campaigns. Ever seen a WinCo commercial? Probably not. They rely on word of mouth and those green price tags they put up for special deals. After trying to find their ads online, I realized they just don’t do traditional marketing. That’s another cost they’re not passing on to shoppers.
You have to bag your own groceries
Here’s one of the trade-offs: you’re bagging your own stuff at checkout. Some people don’t mind this at all, while others find it kind of annoying when they’ve got a full cart. But this is one of those cost-cutting measures that helps keep prices down. Fewer employees needed at checkout means lower operational costs. Pretty straightforward.
The last time I was at a warehouse store, I noticed how much faster you can actually get through the line when you’re doing it yourself anyway. You can organize things exactly how you want them in the bags. Though I guess if you’ve got kids with you or you’re buying a ton of frozen stuff, it might get hectic.
No credit cards accepted here
This is probably the most controversial policy WinCo has. They don’t take credit cards at all. You can use debit cards, cash, EBT cards, but no credit. And before you ask – yes, it’s totally about avoiding those transaction fees that credit card companies charge retailers. Those fees can be anywhere from 2-4% per transaction, which adds up fast when you’re running a high-volume business. So WinCo just doesn’t deal with them.
Does this annoy some customers? Absolutely. But if you’re trying to save money on groceries, you probably shouldn’t be putting them on a credit card anyway. At least that’s how they see it. I’ve noticed more stores doing this actually, especially discount chains.
The bulk bins are seriously impressive
Most WinCo locations have over 800 products available in bulk bins. We’re talking spices, cereal, baking supplies, pasta, rice, beans, nuts, candy, coffee – basically everything. And when you buy from bulk bins, you’re getting way better prices per unit than you would buying the same stuff pre-packaged. You can also buy exactly the amount you need instead of committing to a giant container.
Every time I’ve shopped at stores with extensive bulk sections, I end up spending less than I planned because I’m not forced into buying more than I actually need. You bring your own containers if you want, or use their bags. The selection is honestly better than what you’d find at most regular grocery stores. But then again, scooping your own quinoa isn’t for everyone.
Employees actually own the company
Here’s something pretty unique about WinCo: it’s been employee-owned since 1985. They set up an Employee Stock Ownership Plan that year, and it’s been functioning as the main retirement program for workers ever since. It’s not some token program either. We’re talking about serious wealth building for people who work there long-term.
According to WinCo’s website, employees become part of the ESOP after they turn 19, work 500 hours in their first six months, and then maintain 1,000 hours each fiscal year after that. The share values have grown at about 18% annually since the program started. That’s pretty solid growth over decades. To put it in perspective: $5,000 worth of stock from 1986 would now be worth almost $863,000. Not bad for a grocery store job.
And this matters because you’re supporting a business model that actually rewards workers instead of undercutting their wages. Walmart cut starting pay for some new hires in 2023, which is basically the opposite approach. When you shop at WinCo, you know your money is going to support employee ownership.
They’re open 24/7 most locations
Most WinCo stores are open around the clock, seven days a week. So if you need groceries at 2am on a Tuesday, you can go. Try doing that at Costco. The big warehouse clubs have pretty limited hours by comparison, and they’re definitely closed on major holidays. WinCo stays open even on Memorial Day and Labor Day when Costco shuts down completely. The only days they close are Thanksgiving, Christmas Eve, and Christmas Day.
I mean, how many times have you needed something late at night and had nowhere to go except a convenience store with marked-up prices? This solves that problem entirely.
Only 10 states have WinCo locations
The biggest limitation with WinCo is that it’s only located in 10 western states right now. If you don’t live in the American West, you’re out of luck. The company started in Boise, Idaho back in 1967 as Waremart Foods, founded by Ralph Ward and Bud Williams. Ward eventually bought out Williams and expanded into supermarkets. After Ward died, the employees purchased majority ownership from his family, which led to that ESOP program.
They changed the name to WinCo Foods in 1999 – it stands for “Winning Company,” which is sort of cheesy but whatever. The point is they’ve stayed regional instead of expanding nationwide. So if you live on the East Coast or in the Midwest, you can’t take advantage of these savings. At least not yet.
Is it actually worth switching from Costco
So should you ditch your Costco or Sam’s Club membership for WinCo? That depends on what you’re buying and how often. If you’re someone who goes to Costco mainly for groceries and household basics, then yeah, WinCo is probably going to save you money since there’s no membership fee eating into your savings. You’re getting similar warehouse-style pricing without the upfront cost.
But Costco has other perks like their famous $1.50 hot dog and soda combo, plus they sell electronics, furniture, tires, and other non-grocery items. WinCo is pretty much focused on food and household goods. So if you use Costco for all that other stuff, you might want to keep both. Or just keep Costco for the non-grocery items and do your food shopping at WinCo to maximize savings.
Honestly, the no-membership-fee thing is the biggest selling point. You save money immediately just by not having to pay to shop there. And with prices lower across the board because of their direct-buying model and cost-cutting measures, it’s basically a better deal for most people’s grocery needs. Though you won’t get that Costco hot dog, which is kind of iconic at this point.
