4 Reasons You Might Want To Cancel Your Costco Membership

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For many shoppers, Costco's not merely a grocery store, it's an institution. Costco bests competitors in numerous ways, from its superior store-exclusive products to the limitless supply of quality free samples. And while the chain's food court offerings are essentially re-imagined fast-food fare, shoppers can't get enough of Costco's pizza and hot dogs. That's what's good about Costco, but what does the warehouse retail chain get wrong? And does every consumer reap the same benefits?

We delved into the research and discovered a few compelling reasons why you might want to cancel your Costco membership. Membership fees have increased, and many customers balk at the sometimes-chaotic shopping experience. Also consider that bulk groceries don't fit everyone's lifestyle when it comes to cost and storage space, which is coupled with the fact that Costco is a lot more stringent about sharing memberships with others these days. Let it be known that we love Costco as much as the next food publication, but our findings show that the store isn't suited to every shopper.

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Costco increased its membership fees back in 2024 for all of its membership tiers. Gold Star and Business memberships went up by $5 for a total annual cost of $65, while Executive membership increased by $10, bringing the yearly total to $130. While Executive shoppers experienced the greatest price increase, they also received a bonus; the cashback rewards for the highest tier membership went from a maximum limit of $1,000 to $1,250 (based on the 2% earned on qualified purchases). 

The reason for the price increase was pretty straightforward: memberships bring in a substantial amount of money for Costco. According to Reddit, lots of members took the change in stride, with one person stating, "Still worth every penny." However, another highlighted how the higher fees could impact some consumers. "As a single, the executive is just barely worth it to me," a shopper explained, going on to add, "It won't be at the new price." The customer also said they would be downgrading their membership but didn't rule out the possibility of canceling it "if they harass me to upgrade every visit."

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There's a certain madness about a Costco trip that can be somewhat exhilarating. However, stepping into the store when you're not fully mentally and physically primed for the chaos that awaits usually results in frustration. Crowds are common at many locations, which can cause issues before you even begin shopping. After navigating the packed parking lot (and hopefully finding a space), you'll then need to find your way through the store itself. 

As illustrated by an annoyed Redditor, "Each aisle is packed with people ... other people's carts are constantly hitting me ... it's at the point where I'm getting fed up with Costco." And while visiting Costco midweek can help avoid crowds, some locations are consistently packed. The aggrieved Reddit poster continued, "Regardless of the day or time, I run into enormous crowds." Large Costco crowds become even more unwieldy when you consider that the store's layout constantly changes. An evolving layout keeps shoppers in the store for longer, which can lead to higher sales for the chain. It can also contribute to the chaotic atmosphere of many locations, as customers may fail to find items in the expected places. 

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The earnings that Costco's membership model generates allows the store to price many of its products lower than other grocery chains. As such, Costco items like butter, nuts, cheese, cereal, olive oil, and other groceries offer substantial savings when compared to similar products at other stores. Saving on everyday items is one of the most attractive aspects of the warehouse retail chain, but keep in mind that not all shoppers receive the same value. 

Though products are often cheaper at Costco, customers are likely to spend more money during a single trip because items are packaged in bulk. Then, there's the matter of finding room for the bulk goods you buy at the store. When it comes to perishable goods and frozen foods, shoppers must have the room and the capability to store these items. Without proper storage, you may lose more money to spoilage than you actually saved buying in bulk. For members with large families who go through lots of groceries each week, bulk buying is a great way to save. For individuals who consume less, have less space in their homes, or are on a tighter budget where groceries are concerned, Costco memberships don't always make sense from a savings perspective. 

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Costco has undergone significant changes recently, including an update to the store's member policies. In 2024, the warehouse retailer announced it would require shoppers to scan their membership cards or present photo IDs upon entering the store. Additionally, non-members must be accompanied inside the store by an active member to prevent unauthorized purchases. These changes were made to prevent membership sharing, which is the practice of several people using a single person's Costco privileges (and a single membership fee). 

According to the website, Costco account holders get a free card to be used by another person in their household. From personal experience, this secondary member will receive a card of their own (complete with a photograph), and will be able to shop without the primary account holder. Members are also free to bring up to two guests per visit. However, all purchases must be made by the member. Non-members can purchase goods from the Costco website, but they may encounter an additional 5% charge depending on what they buy.