Costco and Walmart widen premium access
Analysts and trade pieces say Costco is increasingly a go‑to for premium and clean skincare at lower price points, while Walmart is expanding assortment to target a broader customer mix. The narrative is that non‑traditional channels are normalizing access to higher‑end beauty, which shifts where consumers expect to find premium skincare on sale. (mojosalesandbranding.com) (thestreet.com)
Costco and Walmart are pushing premium skin care deeper into mass retail, putting prestige labels and “clean” products next to bulk buys and everyday essentials. (costco.com) (corporate.walmart.com) Costco’s online beauty section now markets “premium-brand skin care products,” including serums, moisturizers and eye creams, and its Costco Next marketplace highlights Korean beauty, Japanese beauty and natural beauty offers for members. (costco.com) (costconext.com) One Costco Next listing for Most Inc. says members can shop Korean skin care brands including Dear, Klairs, Cosrx and Skin & Lab through a member-only offer channel. (costco.com) Walmart has been expanding from the other direction, adding “new-to-customer brands” and “the latest in premium beauty” in a March 21, 2025 corporate post about its spring assortment. On April 18, 2025, Walmart said its Beauty Event would run through May 31 with more than 1,800 deals across beauty categories. (corporate.walmart.com 1) (corporate.walmart.com 2) Walmart is also widening access online. In August 2024, the company said Walmart Marketplace was adding Premium Beauty as part of a broader category expansion, after the number of sellers listing items on Walmart.com grew 20% in the prior fiscal year. (corporate.walmart.com) That shift sits inside each retailer’s core model. Costco tells investors it runs on low prices, a limited assortment and rapid inventory turnover, while Walmart’s fiscal 2025 annual report says Walmart U.S. generated $462.4 billion in net sales and the company reached $121 billion in eCommerce sales globally. (investor.costco.com) (stock.walmart.com) For beauty brands, those systems change the pitch. Costco offers a membership audience and curated online deals, while Walmart offers shelf space, a large store base and a marketplace that can carry more brands than a standard aisle. (investor.costco.com) (costconext.com) (corporate.walmart.com) Walmart has also framed beauty as a founder pipeline, saying in March 2024 that its Walmart Start class included hair, skin and body care brands from women- and diverse-owned founders launching in stores and on Walmart.com. (corporate.walmart.com) Costco’s scale gives the story a different edge. The company reported fiscal 2025 net sales of $254.5 billion, up 8.1% from a year earlier, giving brands access to a retailer whose traffic is built around repeat warehouse visits rather than specialty beauty shopping. (investor.costco.com) The result is that premium skin care is showing up in places shoppers already visit for paper towels, groceries and low-price household staples, and both retailers are using that traffic to make beauty a bigger part of the basket. (costco.com) (corporate.walmart.com)
