Walmart and Target are gaining ground on Costco in customer satisfaction

Facebook Email icon An envelope. It indicates the ability to send an email.

Email Twitter icon A stylized bird with an open mouth, tweeting.

Twitter LinkedIn icon

LinkedIn Link icon An image of a chain link. It symobilizes a website link url.

Copy Link lighning bolt icon An icon in the shape of a lightning bolt.

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

• The American Customer Satisfaction Index results are in and Costco is king for yet another year.
• The wholesale club earned the highest score among general merchandise retailers — again.
• But Walmart and Target made strides last year to narrow the gap.

Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview

When it comes to keeping customers happy, no major retailer does better than Costco.

The Washington-based wholesale club topped the rankings for at least the seventh year in the annual American Customer Satisfaction Index study of general merchandise retailers.

But even though Costco remains king in 2024 with a repeat score of 82, its two largest big-box competitors are gaining ground.

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

Walmart and Target each notched up three points from last year to 73 and 81, respectively. Walmart-owned Sam’s Club earned 81 points, followed by BJ’s at 80, indicating an appreciation for members-only service and bulk pricing.

While little has changed at Costco in the past year — apart from a Netflix-style crackdown on membership sharing — Walmart and Target have been rolling out new store renovations and customer-friendly initiatives to attract more shoppers.

That hard work seems to be paying off.

Of course, all three companies are major food-sellers too, and Costco fared better in the grocery aisles, matching its competitors’ three-point year-over-year improvement.

The supermarket category was also more crowded, with Publix and HEB matching Costco’s 85-point performance.

Scores are derived from a survey of more than 40,000 shoppers who are asked about their recent experiences with the companies.

The study also indicates that the retail industry as a whole got better across nearly every aspect of the consumer experience last year, even in hard-to-love areas like checkout speeds and customer service call centers.

Perhaps unsurprisingly, one of the biggest areas of improvement over last year was in the availability of merchandise, as retailers finally managed to resolve their supply chain woes.

Do you shop or work at Costco, Walmart, or Target and want to share your thoughts on the survey? Get in touch with reporter Dominick Reuter via email.