The Costco effect

Bulk buying and its costs. Is Costco distorting consumer behavior? Should we care? 

Ted Reisdorf, 43, chief executive of Paragon Custom Homes of Scottsdale, Ariz., goes to Costco once every month or two and stocks up on household supplies, to save him more frequent trips to the grocery store. Once he is there, however, he walks up and down every aisle to see “what jumps out” at him. Mr. Reisdorf usually adds some books, DVDs or baked goods to his cart. “I always buy stuff I don’t exactly need,” he said.