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Costco is one of the largest retailers in the world, but it’s not for everybody. Here are three signs a membership may not be worth it. [[{“value”:”

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In terms of retail power, Costco is tough to beat. With 871 locations worldwide (as of July 2024), the warehouse giant boasts 71 million paid members and nearly 128 million total members.

Despite those eye-popping statistics, Costco is not suitable for everyone. Plus, even if you’ve been a member for years, keeping that membership indefinitely may not make sense. While everyone’s budget differs, here are three scenarios that may inspire a member to take a Costco break.

1. You rarely visit the store

If you’re paying for a Costco membership you rarely use, you could decide to put those funds to better use. Whether you’re paying $65 or $130 for an annual membership, that’s $65 or $130 that can be used to help build an emergency fund or pay off existing debt.

While some people have several Costco warehouses within driving distance of their homes, others must practically re-enact the Oregon Trail to get to their nearest Costco. And if distance isn’t an issue, an empty-nester parent may find that they don’t have the same need to shop at Costco as they did when their children were living at home.

Whatever the situation, if you rarely visit a Costco, it may be time to rethink the value of your membership.

2. You’re an impulse shopper

According to Capital One Shopping Research, impulse shopping is a widespread issue. Its research shows:

73% of Americans say the majority of their purchases are unplanned.89% of Americans admit to having some history of impulse buying.80% of consumers say they tend to shop impulsively in brick-and-mortar retailers.54% of Americans have spent at least $100 on an impulse purchase.The average American consumer has spent $281.75 per month on impulse purchases in 2024.The average American consumer makes 9.75 impulse buys monthly, averaging $28.90 each.

In other words, you’re not alone if you tend to impulse shop while visiting Costco. However, that’s cold comfort when finances are tight. If you’re living paycheck to paycheck or have trouble paying bills, it’s time to consider whether the money you save by shopping at Costco is greater than the money you spend impulsively.

3. You primarily shop on Costco.com

Shopping on Costco.com rather than in-store could make it easier to avoid impulse buys. However, because shipping costs are typically factored in, you’ll often pay more for an item online than in-store. Again, if your budget is tight, every extra dollar can help.

Online shopping makes perfect sense if you face challenges that make in-store shopping difficult. However, if you shop on Costco.com because you don’t have the time to get out and pick up groceries, it’s possible you’d be better off with free delivery from Walmart+.

A Walmart+ membership costs $12.95 per month, or $98 annually. And with Walmart+ Assist, anyone who receives aid from the following programs may be eligible to purchase a membership for $6.47 a month, or $49 per year:

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For some, a trip to Costco is like spending an afternoon in an amusement park. It’s an event they look forward to. For others, the idea of finding a parking space and jockeying for position once they’re inside the warehouse store fills them with dread. It takes all kinds.

Whether you adore your Costco membership or have sort of forgotten the card is in your wallet, it’s always a good idea to reassess the things you pay for. If your membership still serves you, that’s excellent news. If not, it may be time to take a break.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Dana George has positions in Walmart. The Motley Fool has positions in and recommends Cboe Global Markets, Costco Wholesale, JPMorgan Chase, and Walmart. The Motley Fool has a disclosure policy.

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