Introduction
If you’re a fan of Costco and another major grocery chain, you may want to brace yourself for a price increase. Both Costco and the other major grocery chain are about to raise their membership costs, meaning that shoppers will have to pay more to access their products and services. But don’t worry, there are still plenty of ways to save money on groceries without breaking the bank. In this article, we’ll explore some of the best tips and tricks for eating healthy on a budget, so you can still enjoy your favorite foods without spending a fortune.
Costco and Another Major Grocery Chain Are About to Raise Membership Costs — Eat This Not That
It looks like shoppers may soon have to pay more to shop at two of the biggest grocery stores in the country. According to CNBC, Costco and another major grocery chain are planning to raise their membership fees.
Costco is reportedly planning to raise its membership fees in the U.S. and Canada by as much as 20%. The new fees will go into effect on June 1, 2021. The exact amount of the increase will depend on the type of membership.
The other major grocery chain that is reportedly planning to raise its membership fees is Kroger. The company is reportedly planning to increase its fees by 10%. The new fees will go into effect on June 1, 2021.
The news of the fee increases comes as both companies are facing increased competition from other grocery stores. Costco and Kroger are both facing competition from Walmart, Target, and Amazon, which are all offering more competitive prices and services.
It’s important to note that the fee increases won’t affect all shoppers. Those who already have a membership will be able to keep their current rate. However, new members will have to pay the higher fees.
If you’re looking to save money on groceries, there are still plenty of ways to do so. Consider shopping at discount stores like Aldi or Lidl, which offer lower prices on many items. You can also look for coupons and discounts online or in your local newspaper. Finally, consider buying in bulk to save money on items like meat, produce, and other staples.
No matter what, it’s important to remember that you don’t have to pay more to get the groceries you need. With a little bit of research and planning, you can still save money on your grocery bill.
Anyone can shop for groceries at popular supermarket chains like Walmart, Trader Joe’s, Kroger, and ALDI. In contrast, if you want to take advantage of Costco’s cheap bulk buys or Amazon Prime’s discounts at Whole Foods, you have to ante up the cost of a membership.
Clearly, that hasn’t deterred too many folks—more than 220 million people are members of one or both of these companies. However, Amazon just confirmed it is raising membership fees, and experts predict that Costco is bracing to do the same. (For more, here are the 6 Things You’ll See at Costco This Year.)
There are two types of Costco memberships for individuals: the Gold Star membership and the Executive membership. The Gold Star, which is the basic option, costs $60 a year. At this level, members can shop inside warehouses and online, get two membership cards per household, and enjoy a lengthy list of perks (like access to the food court, the pharmacy and eye center, the tire center, travel deals, and more).
At $120 a year, the Executive membership costs twice the price. However, it comes with a 2% annual reward, a free subscription to Costco Connection magazine, and all the benefits of the Gold Star option.
The price of both memberships hasn’t changed since June 2017, which is almost five years. Typically, the warehouse chain ups membership rates every 5.5 years, according to analysts.
To get all the latest Costco and other grocery store news delivered right to your email inbox every day, sign up for our newsletter!
Based on history, it’s about time for membership rates to increase, but the timing is unfortunate. Inflation and grocery bills are skyrocketing as the pandemic stretches into two years. According to predictions, members should expect to pay $5 more for the Gold Star membership and $10 more for the Executive membership beginning sometime this year.
Membership costs aren’t only increasing at Costco, but also at another top retailer in the grocery space.
Members of Amazon Prime have access to Amazon Fresh stores, grocery savings at Whole Foods, and more perks. They’ve paid the same membership fee since 2018, following the last price hike in 2014. However, Amazon just announced that its annual fee will increase from $119 to $139, and its monthly fee will rise from $12.99 to $14.99 by the end of the month.
Amazon Prime members used to get free deliveries from Whole Foods, but a $10 fee was tacked on to all orders in the fall of 2021. Add the increased price of a membership, and it will become even more expensive to get groceries delivered to your door. The increase is due to “the continued expansion of Prime member benefits, as well as the rise in wages and transportation costs,” the company said in a statement to USA Today.
A membership also gets shoppers an extra 10% off sale items, exclusive grocery delivery, the ability to pay at Whole Foods with the Amazon app, and access to Amazon package pickups and returns.
This isn’t the only thing different at Costco—here are 5 Changes Members Need to Know About Right Now.