The latest news about Costco hasn't been well received by their regular customers. This chain, known for offering products in large quantities and at competitive prices, announced a major change in their fees a few months ago. These changes, in effect since March 1, affect all types of subscriptions and have caused concern among users, both in physical stores and online.
Since that date, customers in the United Kingdom must pay higher fees to keep their subscription active. This is the first price adjustment in eight years, which Costco justifies due to increased operating costs. In some cases, the increases exceed 40%, which has led many users to consider canceling their membership.
Specific changes in membership fees
The price adjustments vary depending on the type of membership. For individual members, known as "Gold Star," the annual fee increased from £28 ($35.50) to £35 ($44.40), a 25% increase. If an additional cardholder is desired, the price rises from £14 ($17.70) to £20 ($25.40), which represents an increase of nearly 43%. For business customers or "Business," the fee went from £22 ($27.90) to £25 ($31.80), a 14% increase, while adding an extra cardholder increased from £14 ($17.70) to £15 ($19.10).
Meanwhile, executive memberships also saw an increase, according to The Sun. The executive for businesses goes from £56 ($71.20) to £65 ($82.70), a 16% increase, and the individual executive rises from £62 ($78.80) to £70 ($89.10), which is 13% more.
Although these memberships offer 2% rewards on purchases, with a limit that now rises to £500 ($636) for individuals and £750 ($954) for businesses, the increase is significant. In addition, it should be noted that these prices do not include VAT, so the actual cost will be even higher.
Divided reactions among customers and new rules
User opinions are divided. Many have expressed their frustration and have threatened to cancel their membership. Some claim that the increase doesn't justify the savings they get and prefer to look for other options.
Others took advantage of the opportunity to renew before March 1 to avoid the immediate increase. However, not everyone is willing to give up Costco; several users defend the membership for the benefits it offers, such as savings on fuel and exclusive products.
In addition to the changes in fees, Costco implemented new rules since January. Now, only a spouse or partner can be added as an additional cardholder on the Gold Star membership, and they can be added at no extra cost. Additional cardholders who already existed before this date may renew, but at the new higher price.
Ultimately, this price adjustment marks a turning point for Costco in the United Kingdom. With around 2M members, the company hopes their shoppers understand the need for the increase to keep the quality of service. The real impact on sales and user loyalty will be seen in the coming months.