Costco is well-known for carrying high-quality American brands and offering a money-back guarantee. Members can also shop for private label Kirkland SignatureTM products that are equal to or better than national brands, such as juice, cookies, coffee, housewares, luggage, clothing, and detergent. But did you ever wonder why getting a Costco membership in the UK is difficult?
Costco in the United Kingdom only allows certain professions to become members. Since Costco is known for lower prices and bulk buying, millions of families will take advantage of this membership, which may greatly affect the cost of the goods they sell.
How Would the Consumers Affect the Costs at Costco?
Millions of families in the UK could significantly reduce the cost of their supermarket shopping by going to Costco. The same crowd has abandoned the big supermarkets in recent years, preferring to shop at discount stores such as Aldi and Lidl.
According to the most recent Kantar Worldpanel data, Aldi is now the fifth most popular supermarket in the UK, ahead of the Co-op, with Lidl trailing only Waitrose in eighth place.
Their allure has been simple: high-quality products at a significantly lower price than what customers can get from the big boys.
However, if you’re willing to buy in bulk, another option can provide even more significant savings: Costco.
Consider toilet paper: a pack of two rolls may cost £1, implying that each roll costs 50p. On the other hand, a pack of four could cost £1.50, bringing the cost of each roll down to less than 38p.
This is how Costco operates. It’s essentially a massive warehouse where regular retailers will go to stock up on the goods they require, except for members of the general public. (Source: The Mirror)
Who are the Individuals that are Qualified for the Costco Memberships?
One thing to keep in mind about Costco is an annual membership fee to pay to shop in the store, with a couple of different membership levels to choose from.
Individual membership costs £33.60 plus VAT, while executive membership costs £74.40 plus VAT, with the last tier including a 2% reward which is essentially cashback on your purchases.
It’s important to note that not everyone is eligible for Costco membership; you must be a current or retired employee of one of the following companies: Banking or Finance, Local Government, Fire or Rescue Service, Post Office, Airlines, Education, Police Force, Civil Service and Armed Forces, Medical or Health Service, Insurance, Accounting, Law, Architecture, Surveyor, and Engineering.
To join, you must also provide proof, such as an employee ID card, an old payslip, or a pension statement. If you do not qualify, you can still shop online, but your purchases will be subject to a 5% VAT surcharge. However, you can avoid this fee by purchasing an online subscription for £15, including VAT. (Source: The Mirror)