Costco has confirmed a major shake-up to its membership fees from next month. The wholesale warehouse chain - which has 29 shops in the UK - will raise its membership fees by 42% from March. According to a report from the Sun, letters informing members of the increases started to be sent out at the beginning of this month. In the UK, there are around two million Costco members. Costco says the price hike, which is the first in eight years, comes as it tries to "keep pace with rising costs.".
Costco is a chain retail store that sells items in bulk and differs from other retail chains as you need to be a member to be able to shop there. You also need to be a member to shop online, although the requirements are less specific. From March 1, membership for individuals, which is known as Gold Star, will rise from £28 to £35 - a hike of £7, or 25%. Alongside this, the cost of adding an extra gold star cardholder to your account will increase from £14 to £20 - £6 more and a 42% rise.
The cost of business memberships for trade customers will also be rising from March, with an account rising from £22 to £25, an increase of £3, or nearly 14%. Adding additional business cardholders will also go up by £1 to £15 a year. For executive business customers, membership will increase by £9 a year - or 16% - from £56 to £65, while executive gold star membership is increasing by £8 or 13% to £70 up from £62. Executive level members get 2% rewards on purchases, which is capped at £400 a year for individuals and £500 for trade.
Costco has also said that these caps will rise alongside its annual fees, which means shoppers can earn more rewards. From March, these caps will rise to £500 and £750, respectively. However, it's also very important to remember that Costco's membership prices do not include VAT. Usually, it is automatically added to the listed price at most retailers. Costco membership and shelf prices don't include it because many of its customers are businesses and can claim back VAT on their business purchases. This means you will pay slightly more, and with 20% VAT on top, the individual member price sits at £42, while business customers will pay £30. The cost of online-only membership is £12.50 and it has not confirmed whether this will also be rising from March 1.
