Is Costco worth it? As chain hikes membership prices, we reveal who shouldn’t shop there & the one deal EVERYONE loves
WITH over two million members and 29 locations in the UK, Costco is often regarded as THE destination for bulk-buying.
But with membership prices set to go up in weeks, are their deals still saving you money? And is it still worth signing up?
The US wholesale warehouse chain has amassed a cult following since it first opened here in 1993.
But now the price of its annual membership is set to rise by up to 42 per cent.
From March 1, the fee to sign up to Costco will go from £28 to £35 for individual members.
We’ve investigated the new membership terms as well as the price of top items to see if its fees and bargains are worthwhile, as well as who is getting their money's worth and who isn't.
What's happening to membership fees?
As well as the membership price hike, adding an extra cardholder onto that policy will now cost £20 up from £14 - a 42 per cent increase.
Trade customers will pay £25 for membership from next month - up from £22 now.
Individual membership fees have VAT added at the checkout too, meaning the total cost of annual Costco membership will be £42 - up from £33.60.
Shoppers need to ensure that their bulk purchases genuinely save them money
Richard Price
Business customers will pay £30 including VAT - although businesses can claim back this tax on both membership and any purchases at the store.
There is a hack to avoid the hike this year, however.
If you renew your membership before March 1, you’ll pay the current price and membership can be renewed up to 90 days ahead of your card’s expiry.
Is Costco worth it?
Experts are warning the new, pricier, cost of being a Costco member won’t be worth it for some.
“Shoppers need to ensure that their bulk purchases genuinely save them money,” says Richard Price, grocery expert and owner of online supermarket, .
“To make the £35 individual annual membership worthwhile, a shopper should be saving at least £3 per month (or around 70p per week) compared to supermarket prices.
“Those who regularly buy household essentials, cleaning supplies, and non-perishable foods in bulk will likely see these savings quickly add up.
"However, infrequent shoppers may find that the membership fee outweighs the benefits."
Budgeting experts used to recommend smaller households share the cost of a Costco membership with a friend to lower the price while still benefiting from access to bulk savings.
But alongside the price rise, Costco has announced new rules stating shoppers can only add an extra ‘gold star cardholder’ if they are a partner or spouse living in the same household.
So for each household to break even on the extra £7 added to the membership, you’d need to save at least £7 more per year compared to regular supermarket shopping.
“If bulk toilet paper at Costco offers a £3 saving per pack, purchasing three packs a year would justify the extra cost,” Richard adds.
Bog roll bargain, or just bog standard?
Here, we compared the price of four popular items often found in shoppers' baskets to take a snapshot look at who comes out on top price wise.
Costco was selling a 32 pack of Cushelle loo roll for £26.89, or 85p per roll - and there’s a minimum two-pack purchase, so you’d face an outlay of £53.78 for 64 loo rolls.
But Asda is selling Cushelle loo roll for £4.68 for six rolls, or 78p per roll - and its rolls contain an average 252 sheets per roll, compared to the Costco pack’s 236 sheets.
And that's without factoring in the VAT and membership fee meaning Asda works out cheaper.
If you're not fussy about brands, then it's worth looking at own-brand offerings.
Online, Costco shoppers can buy a pack of a whopping 1,440 Kirkland loo rolls at just 55p per roll - but the average British home would struggle to find a place to hide over 1,000 toilet rolls!
Deal or no deal
What about other items? We looked at popular basket fillers.
We found Costco selling 16 Activia 0% fat mixed fruit yogurts for £3.99 thanks to a special offer running at its warehouses.
However, on the same day, Asda was selling an eight-pack of the same yogurts for £3.97.
This works out at 25p per yogurt at Costco versus 50p at Asda - but how much of a bargain that is, of course depends on whether you need and could consume 16 perishable yogurts before the use by date.
Costco was selling a 3kg box of Scott’s porridge oats for £4.39 but the same pack is available from for just £3.50.
If you’re not bothered about the brand name, supermarkets are much cheaper. Tesco’s porridge is £2.70 for 3kg.
With prices changing daily and sometimes hourly thanks to dynamic pricing, finding the best deal can be anything but straightforward.
It doesn't help that the items are slightly different in size too, so it's hard to compare like-for-like baskets.
And you need to make sure that you will use the items before they perish or that you have enough room to store them.
I’M A BULK BUYING EXPERT, HERE ARE MY TOP TIPS
HAYLEY Merrick started bulk-buying toiletries when she realised how much she could save by stocking up in big quantities.
The 38-year-old from Staffordshire shared her top tips.
THINK OUTSIDE THE BOX
She estimates to have saved hundreds - if not thousands of pounds - by bulk buying staple beauty products.
She explains: "My current moisturiser is an unscented and unbranded base cream in a 2.5 litre jerry can.
"It's been a while since I bought it as it lasts ages and when it runs out I tend to shop around to get the best deal.”
THINK ABOUT YOUR SPACE
It can be tricky to bulk buy if you're living in a smaller pad - but not impossible.
Hayley says: "The only downside is storage space, however despite often stocking up on things for several months or even years, I don’t buy large items in huge enough quantities for this to be an issue.
"I have various cupboards that I use - some in the kitchen, the bottom of the bathroom cabinet and in the spare room.
"I then tend to decant things like porridge oats into large glass storage jars."
START SMALL
Want to give it a go, but not sure where to begin?
Hayley says: "Start with products that you love and need replacing frequently, such as shower gels, soaps and other consumables.
"Have a look online and find bulk deals.
"Amazon usually has them, or if you fancy a change check out natural and organic skincare ingredient stores.
"They often have bulk base creams, shower gels and shampoos.”
So who really benefits?
But there are deals that might make it worth it for you.
Costco members always rave about its deals on petrol - which can often be cheaper than local forecourts - as well as clothing and technology.
Ashley Bailey, founder of AI online shopping assistant, Dig This Deal, is a Costco member.
He says: “Costco feels tailored towards those working in the food industry, who buy bulk and can claim back the VAT on the items they buy.
“For a normal consumer, when you take in the hike in membership costs and the cheaper or equivalent options online, it doesn’t make sense.
“I’ve seen good sales of products such as Apple AirPods, smartwatches and vacuums at Costco, but the deals are usually comparable with what you could find on eBay, Amazon or other online retailers.”
The main rule to weigh up the pros and cons of Costco membership is to work out how often you visit the stores, and your average savings.
When you visit a Costco store in person, it's so tempting to fill up your trolley with exciting bits and bobs - but these can really add up.
Work out what items you could bulk buy and see if you would get an average saving of at least £7 per month to see if you can justify the membership increase.
If not, it could be time to consider parting ways with the bulk-buy giant.
How do I join Costco?
You have to own or manage a VAT-registered business to join as a trade member.
For individual membership, you need to work in (or have retired from) a profession such as accounting, teaching, chartered surveying, or medicine.
Front-line workers such as NHS staff, police officers and members of the armed forces can also access individual membership.
Some members of organisations such as the National Trust and AA say they have been able to access Costco membership via these schemes too.
A list of accepted jobs and qualifications can be found on .
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories
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