The income of your average Costco shopper is massive compared to your average Walmart shopper as well. They can't eliminate the annual fee either because it's

The income of your average Costco shopper is massive compared to your average Walmart shopper as well. They can't eliminate the annual fee either because it's literally less than their annual profit (well maybe not in this market but it was a few years ago). Their demographic is people with the financial 'ability' to think $100 ahead for a year, to whom they deliver goods at basically cost. Walmart vs Costco is a complete myth. Costco operates where Walmart does very poorly.