There’s a big danger to shopping at Costco people don’t like to talk about.
As awesome as it is to be able to buy 12 gigantic croissants for just $6 or a massive cake for about a quarter of the price your local bakery might charge, getting more bang for your buck isn’t always a good thing in the context of baked goods.
If you’re like me, it might be painful to throw out leftover muffins you don’t get around to eating – so you might prioritize muffin consumption over regular food.
Meanwhile, when you buy baked goods at Costco, you get more than a reasonable amount of value for your money. Sometimes, you get an almost too generous amount of sugary goodness to take home.
That could be a problem if, also like me, you tend to lack self-control. It’s less of a problem, though, if you’re buying cake or brunch food to feed a crowd, and you’re also on a budget.
But whether you’re sweets-obsessed like I am or you simply like a good bargain, it’s hard to argue with the fact that Costco’s bakery offers members outstanding value. And recently, Costco has made an effort to not only expand its bakery offerings, but make the process of ordering cakes a lot easier on members.
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Costco makes a big investment in its bakery section
Costco is well aware that its bakery is one of the reasons members keep renewing and coming back to the store. From its low-cost pies to its muffins and breads, it’s hard to find a better deal if you want stuff that’s baked fresh daily.
In recent months, Costco has taken steps to improve its selection of bakery offerings. And it’s a move that could prove to be very valuable for the company at a time when it’s trying to drive member renewals.
Recently added products to Costco’s bakery
Here are some newer products you can find in Costco’s bakery section today:
- Peanut Butter Monster Cookies — a soft, chewy peanut butter cookie packed with peanut butter chips, chocolate chunks, and peanut butter candies Source: Delish
- Brownie Walnut Pie – a decadent concoction with a fudgy brownie base, a graham-cracker crust, and a rich chocolate ganache and toasted walnut topping. Source: Allrecipes
- Chocolate Chip Cookie Bar Cake — a layered dessert that features chocolate and vanilla cake, mousse stuffed with cookie dough pieces, and a chocolate frosting Source: Delish
- Marshmallow Crispy Cookies — buttery and crispy cookies filled with marshmallow bits, inspired by Rice Krispies treats Source: SheFinds
In addition to bringing new products to the bakery section, Costco is also making a member favorite more accessible.
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As CEO Ron Vachris said during the company’s most recent earnings call, “We’ve got ordering cakes and deli trays online coming.”
The ability to order Costco’s iconic sheet cakes online is huge, since it’s long been a pain point for members to have to go into the store, fill out an order form, stick it in a box, and hope for the best.
Costco’s bakery investments have come at the perfect time
These days, many consumers are feeling squeezed financially.
A good 88% of Americans have changed the way they grocery shop due to inflation, according to Lending Tree. And with grocery prices up 2.4% on a national basis, per the most recent Consumer Price Index, a lot of people are spending on extras more cautiously.
At the same time, it’s hard for consumers to forgo bakery products. There’s always a birthday to celebrate, a retirement to commemorate, or an early morning craving to satisfy. So it’s a smart thing on Costco’s part to not only introduce new bakery items to entice members, but keep their pieces competitive at a time when costs are up across the board.
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This strategy also makes a lot of sense for Costco at a time when it’s focused on member retention.
During the company’s Q1 2026 earnings call, Costco reported a 92.2% renewal rate for memberships in the U.S. and Canada. That said, renewal rates in the U.S. and Canada declined by 10 basis points during the quarter, largely due to lower renewals among new digitally-signed members.
CFO Gary Millerchip warned investors, “We may still see a slight decline in the overall renewal rate over the next few quarters.”
By making its bakery section more exciting, Costco is doing a good job of getting members to not only spend money but also remain loyal to the store.
Maurie Backman owns shares of Costco.