Costco reveals huge shake-up to membership fees and shoppers will be fuming

COSTCO has revealed a huge shake up of its membership fees that's left shoppers fuming.

The bulk-buying giant which has 29 shops across the UK and also sells online has told customers they will soon pay more.

The price of annual membership will rise by up to 42% from March 1.

In renewal letters hitting doormats now, Costco said it was increasing the price "to keep pace with rising costs" - its first hike in over eight years.

Membership is needed to shop at any Costco warehouse and on its website.

Membership for individuals, known as gold star, will rise from £28 to £35 - a hike of £7, or 25%.

Adding an additional gold star cardholder will increase from £14 to £20 - £6 more and a 42% rise.

Meanwhile business membership for trade customers will go from £22 to £25, an increase of £3, or nearly 14%.

Adding additional business cardholders will go up by £1 to £15.

For executive business customers, membership will increase from £56 to £65. That's a hike of £9, or 16%.

Executive gold star membership is increasing from £62 to £70, up £8 or 13%.

Executive level members get 2% rewards on purchases, which is capped at £400 a year for individuals and £500 for trade.

These caps will also rise, meaning shoppers can earn more rewards, to £500 and £750 respectively.

However the new membership prices do not include VAT (value added tax), which means you'll pay slightly more.

VAT is a tax added to most items you buy and at other stores is included automatically.

At Costco membership and shelf prices don't include VAT. That's because many of its customers are businesses, and they can claim back VAT on purchases.

With 20% VAT on top the individual member price will be £42 and business customers will pay £30.

In letters to customers, Costco also revealed new rules that came in from January 1 that means shoppers can no longer add an extra gold star cardholder unless they are a spouse or partner, which are free to add.

Those already added before this date will still be able to renew, but will pay the higher price from March.

The cost of online-only membership is £12.50. We've asked Costco if this will rise too and will update when we hear back.

THREATS TO CANCEL

Customers have threatened to cancel after learning of the change.

Commenting on one deals group a member said: "Going to cancel. Wait for a big tech deal to come along otherwise waste of time"

Another on Facebook said: "Don't go enough to justify paying the extra, and you don't really save anything on branded goods only Kirkland products are worth it."

A third said: "Yes if you renew before then [March 1] it will be at current price.

"Mine isn't due until April but just renewed to prevent the rise. Won't bother the year after as getting too expensive for me Vs savings."

You can renew membership up to 90 days in advance and beat the price hike.

But other shoppers have shrugged off the change saying it's still worthwhile.

One said: "The cheaper petrol pays for mine a year. I work near one."

Costco is often found to have cheaper prices than other petrol stations and supermarkets in the area.

The US retail giant operates 19 petrol stations in the UK.