4 Signs You Should Cancel Your Costco Membership in 2023

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If any of these ring true, it may be time to call it quits with Costco. 

Costco is a favorite of many shoppers, and it’s easy to see why. It offers low prices, a fantastic product selection, and a generous return policy. The food court and its $1.50 hot dog and soda combo are a hit, too.

To shop there, you need a Costco membership. That costs either $60 for a Gold Star membership or $120 for an Executive membership. While a membership is worth it for Costco fans, there are situations where you’re better off saving your money and shopping elsewhere.

1. You’re spending too much

Since Costco is known for competitive prices, people often assume they’re saving money there. But there are also ways that Costco can get you to overspend. For example, free sample stations convince shoppers to make impulse purchases. Plus, large product sizes get you to buy more than you need.

If you’re shopping at Costco to save money, make sure you’re actually saving money. If your grocery bill is the same or higher than usual, then your Costco membership isn’t doing you any good.

2. You no longer live close by your nearest Costco

There’s not exactly a Costco warehouse around every corner. It’s widespread, with nearly 600 locations in the United States, but there are plenty of areas where the closest Costco is 30 minutes or more away.

When you’ve moved and don’t have a Costco nearby anymore, a membership may not be worth it. You’ll be spending more on gas and using up more time, when you could just go to a local supermarket instead. Think about whether you really want to make the drive to Costco on a regular basis, or if you can be just as happy shopping elsewhere.

3. Your household has downsized

Costco is paradise for families and roommates who shop together. You can get great deals while buying in bulk. It isn’t always as beneficial for people who don’t need to buy as much.

For example, if your kids have moved out and now it’s just you and your spouse, you might not want to load up on groceries anymore. Or, if you recently downsized from a one-bedroom apartment to a studio, you may not have room for giant packages of paper towels, huge jars of peanut butter, and boxes with 300 pieces of bacon.

4. You’re dreading your shopping trips

Shopping at Costco is definitely an experience. Warehouses are huge, and often crowded, so everything takes longer. There’s a lot of walking involved, no matter how many items you need. You also need to present your Costco card on the way in and your receipt on the way out. That all means shopping trips tend to take longer than they do at other stores.

Some people love shopping at Costco, but others feel the opposite. If you’re thinking to yourself “let’s get this over with” every time you go to Costco, you’re better off shopping somewhere else.

For those who save big at Costco or love shopping there, it’s worth the price of admission. If not, there are plenty of other places to shop, so you might as well keep the $60 or $120 you’d pay for an annual membership.

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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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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