What I learned:
The rotisserie chicken is the loss-leader everyone points to first - The single most-repeated idea in the last 30 days is that Costco's $4.99 rotisserie chicken loses money on purpose to pull you in the door. As @VictorishB123 put it, "Costco will sell a few items like the rotisserie chicken and the hot dogs at a loss in order to increase people coming to the store who will buy other things sold at a profit." AOL notes the bird "is still the same price as it was over 30 years ago... so the chicken is being sold at a loss - and Costco is okay with that." The chicken also has legal heat right now: kavout.com reports lawsuits that "challenge the integrity of the Kirkland Signature brand, a cornerstone of Costco's business model."
Some shoppers read the loss-leaders as a trap, not a gift - Not everyone frames the cheap chicken as pure generosity. @SmartNotHard1 went viral arguing "Costco makes almost zero profit on everything it sells you... the $1.50 hot dog combo hasn't changed price since 1985. the rotisserie chicken is sold at a loss. the gas is priced at near zero margin. these aren't good deals. they're traps. beautiful, deli[cious]..." It's the anti-Amazon framing flipped on its head: the membership model works precisely because the door-openers are irresistible.
Membership-first economics is the actual engine, and loyalty barely flinched at a fee hike - The reason Costco reads as the anti-Amazon is that the profit comes from the card, not the markup. Per The Motley Fool, Costco raised membership fees for the first time in 7 years and renewals only slipped to 92.1% (down 0.1%), while the increase drove roughly a third of membership-fee growth. Mojo Sales & Branding calls Costco members "the world's most loyal shoppers" and points to the sunk-cost effect: once you've paid $65 or $130, you shop enough to justify it.
Kirkland is the loyalty anchor doing quiet, enormous numbers - Private-label loyalty is the other half of the anti-Amazon story - a house brand people actively seek out rather than settle for. Chandeliers Life and related coverage peg Kirkland Signature at roughly $90B in 2025 sales (up ~$15B year over year), positioned at a 15-20% value advantage over national brands with equal-or-better quality. Wikipedia notes the brand launched in 1995 and now spans a huge array of products - and it's become a primary reason members renew.
Meanwhile shoppers really are tiring of Amazon - the data shows spend shrinking - The "anti-Amazon" contrast landed hard this month because Amazon's own Prime Day flashed warning signs. Fortune framed record sales as masking "a darker truth: Americans are spending more and getting less," and Chain Store Age reported the second straight year of declining order size - average order down ~17% to $48.36 - with half of Prime Day shoppers also hitting Walmart Deals. Cory Doctorow via Slashdot supplies the vocabulary shoppers are borrowing - "enshittification," Amazon "way past its Prime" - the exact opposite of how people talk about Costco.
KEY PATTERNS from the research: 1. The rotisserie chicken and $1.50 hot dog are the universally-cited loss-leaders that define Costco's model - per @VictorishB123 2. Membership fees, not product margin, are where the profit lives - and a rare fee hike barely dented 92.1% renewals - per The Motley Fool 3. Kirkland Signature (~$90B in sales) is a private-label loyalty anchor that people seek out, not settle for - per Chandeliers Life 4. A skeptical counter-take treats the cheap items as "traps," not deals - per @SmartNotHard1 5. Amazon fatigue is measurable - Prime Day order sizes fell ~17% year over year as shoppers spread spend to Walmart and Target - per Chain Store Age