Ep.276 The Costco Strategy: Why Less Choice Makes You Spend More

The Costco Strategy: Why Less Choice Makes You Spend More Walk into Costco and you won’t find 30 brands of peanut butter—maybe just two. That’s not a limitation. It’s strategy. A typical grocery store stocks 30,000–50,000 items. Costco? Around 3,700. By reducing choice, they reduce decision fatigue. Shoppers feel confident, not overwhelmed—and they buy more. Behavioral economics calls this “choice reduction.” Fewer options, higher conversion. For Costco, it’s billions in revenue. The money l...