Buying Bulk is Going to Cost You More – Costco is Raising Their Membership Fees
Love all those food samples while you're shopping and being able to buy toilet paper and ketchup by the bulk? Pretty soon it's going to cost you more.
Costco announced last week that their membership fees will be going up this year. If you're a 'Gold' member you will pay $5 more ($60/year) while an 'Executive' member will pay $10 more ($120/year). These new fees go into effect June 1st and affect about 35 million customers, in the U.S. and Canada.
This is the first time the wholesaler is increasing their fees in six years. So why now? The latest earnings showed a decline in sales and profits, which according to WXYZ Detroit disappointed Wall Street's expectations.
They said it has hit not just food but electronics -- another key category for the company. TV prices in particular have been falling sharply."
Costco also faces competition from Sam's Club who has lowered the cost of their items to attract more members.
Will you continue shopping at Costco after the fees increase?