The American Supermarket That Doesn't Require Membership and Threatens Costco and Walmart

Food prices in the United States continue to rise and consumers are looking for more economical options for their shopping. While chains like Costco and Walmart dominate the market, one company has managed to compete unexpectedly. Its strategy is based on offering low prices without the need to pay an annual membership.

The Success of WinCo Foods in the United States Amid Inflation

Since 2020, food costs have risen by 20%, the largest increase in more than four decades. In states like Hawaii and California, consumers can spend more than $1,200 monthly on groceries, while in other regions like Iowa or Nebraska, the figure still exceeds $800.

In this situation, many turn to warehouse supermarkets to reduce long-term expenses. However, the need to pay an annual membership at Costco and other American chains can detract from this strategy's appeal. This is where WinCo Foods comes in, a company that offers competitive prices without requiring a subscription.

A Business Model Without Intermediaries

WinCo Foods has managed to keep prices low by eliminating unnecessary costs. It doesn't invest in advertising, doesn't accept credit cards, and customers must pack their own purchases. Additionally, it buys directly from American manufacturers and farms, reducing intermediaries' involvement in its supply chain.

Another key strategy is bulk sales. In some stores, consumers can find more than 800 products in large quantities, allowing for greater savings compared to traditional packaging.

Presence in 10 States and Growing

The company has expanded its presence in the United States, now being in ten states: Arizona, California, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, and Washington. Its growth has been steady thanks to the opening of its own distribution centers, allowing it to supply its stores without relying on third parties.

Since its founding in 1967 in Idaho, WinCo has evolved to become one of the most competitive supermarket chains in the country. Currently, it has more than 135 stores and continues to expand into new regions of the United States.

A Supermarket in the Hands of Its Employees

Unlike other chains, WinCo Foods has been employee-owned since 1985. Through the Employee Stock Ownership Plan (ESOP), employees can acquire company shares and benefit directly from its growth.

According to the company, any worker who completes 500 hours in six months and 1,000 hours annually becomes a co-owner. This model has ensured stability and has been key in the company's expansion in recent years.

WinCo Foods Ranks Among the Best American Supermarkets

WinCo's impact hasn't gone unnoticed. According to the Annual Retailer Preference Index (RPI), the chain ranked as the fourth-best supermarket in the United States. It was only surpassed by H-E-B, Market Basket, and Costco, while Aldi closed the top five.

WinCo Foods' business model has proven to be a strong alternative against giants like Costco and Walmart. With low prices, expansion into new regions, and a system that favors its employees, the chain continues to gain ground. As more consumers seek to reduce costs, WinCo emerges as the ideal option for those who want quality and savings without compromises.