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grocery shopping at Costco was not for me for those same "bulk" related issues. However, I did find that there are indeed somethings that I do have room for and that are not perishable or have a long shelf life, as well as other single item things that I actually am looking to buy that they have at a much better price than I can find anywhere else; examples: coconut water, Gatorade, ibuprofen, razor blades, energy/protein bars, clothing items. I have also purchased some tools there -- most notably a wood splitter (the exact one I was shopping for) at more than $100 less than what I could get it for anyplace else. Same thing with tires. And finally, I wear hearing aids and have for 15 years. I've been able to get hearing aids at Costco for half what I was quoted for the same pair elsewhere twice now (total savings = $4000+.

But , yeah, the business model does have some problems as you mentioned. One of them that strikes me is that the people who shop at Costco are often the people who can afford to buy in bulk. So the notion that they provide product at a significantly lower profit margin applies in large degree to only that segment of society. That bothers me -- as it does shopping at my local supermarkets where I can stock up on items we routinely purchase (like coffee) when it is on sale because I can afford to buy in bulk. Ergo, life is cheaper grocery-wise for me compared to those who live paycheck to paycheck. One of the many flaws of minimally-regulated capitalism.