Report says Costco’s prices cheaper than H-E-B, but one does more

A market report from May 2023 pits nationwide wholesale brand Costco against San Antonio-based H-E-B, saying that the subscription-only store had better prices. On the other hand, the report also said that H-E-B  had more products to offer customers. MySA thinks this report is missing a few H-E-B details that show just how much more the Texas store does for its customers. 

The report from a website called The Ascent says products at Costco tend to have a lower price than H-E-B products because it also sells them in bulk. The report compared the prices by ounce, pound, singular item and packs for bananas, Kellogg’s Frosted Flakes. Coca-Cola Classic Coke, Jack Link’s Beef Sticks, Oreo Cakester and bacon. 

Bananas prices at Costco were 46 cents per pound while H-E-B bananas were 53 cents per pound, a 7-cent difference. When it comes to a pack of bacon were $3.70 per pound at Costco and $6.88 per pound at H-E-B. These were the prices in 2023. A fresh bunch of bananas are currently listed at 44 cents per pound in some San Antonio stores, but that price will vary by location. 

H-E-B has more products to offer customers, according to The Ascent report. Costco had 4,000 SKUs, or stock keeping units, while H-E-B had 30,000 SKUs in 2023. Stock keeping units are unique identifying numbers that are given to products. The more SKUs, the wider variety of products. 

H-E-B also has products that are locally-source or from Texas.

Costco sell in bulk but most of its products are national name brands as well as its own brand, Kirkland Signature. H-E-B has its own brand of products on top of Texas brand Hill Country Fare. H-E-B also has a selection of “Shop Local” produce from Texas farmers and producers. The big time Texas grocer also selects and sells products created by Texas locals.

There are four Costco stores in San Antonio, but only three of the stores have gas stations. As of Friday, February 2, the gas price average from the three Costco gas stations in Texas sat at $2.69 per gallon, according to Gas Buddy. The Costco in Selma, Texas, right outside of San Antonio, had the lowest gas price at $2.65. 

When it comes to H-E-B, the gas price average is significantly higher than Costco at $2.82 per gallon. The lowest gas price is $2.69 as of February 2. However, Gas Buddy has 30 H-E-B gas station entries.  Gas Buddy relie on reports from users, so there are some H-E-B stores not on the Gas Buddy list. Still, H-E-B has a lot more gas stations than Costco stores, meaning more accessible locations. 

It should be noted that people can buy gas from Costco with a Costco Shop Card, meaning you don’t have to have a membership. However, you still need to be a paid member of Costco to buy a Costco Shop Card, so unless a member gifts you a Costco Shop Card, membership is still involved.

A Gold Star membership costs $60 per year and the Executive Level membership costs $120 per year, according to the website. 

Costco will have better deals, especially when it comes to buying bulk, but H-E-B has a bit more to offer Texas consumers. The San Antonio grocer also has a brand that has become uniquely and wholly Texas, and that brand has spread to clothing, cups and candles. 

I will say this, H-E-B has True Texas BBQ and Flaming Bird restaurants, but I’m not sure they hit as hard as a $1.50 hot dog from Costco.