Frustration, shrugs for Long Islander shoppers over Costco fee hikes

Buying in bulk at Costco to save a few bucks will be less of a bargain come September.

The chain of warehouse-style membership stores, including several Long Island locations, is upping the price of a standard annual membership from $60 to $65. The retailer's premium plan, the “Executive Membership,” will increase from $120 to $130 annually. The increases are set to go into effect Sept. 1.

In an emailed statement Thursday, Costco said the fee increases are the company's first in seven years.

“Membership fees help to offset costs so we can keep our prices low,” the statement said. “A modest increase in fees will allow us to bring our members even greater value.”

Outside the Commack Costco on Thursday, Felix Baba, 51, of Deer Park, loaded up a van with groceries and was hearing none of it.

“They’re making enough money,” Baba said. “Why [do] they want to make more money on us?”

Costco's stock shares have nearly doubled during the last 18 months, increasing the company's market value by about $180 billion during that span, according to The Associated Press.

Costco's shares rose by more than 2% after news of the fee increases and its latest sales gains came out.

The company disclosed its sales for the five-week period ending July 7 rose by 7% from the same time last year to $24.48 billion, AP reported.

Central Islip resident Denise Pacheco, 35, shopping Thursday at the Commack Costco, said even a small fee hike stings.

“I think it’s a little too much, even though it’s $10 more,” Pacheco said of the Executive Membership increase. “Everything is going up, why are you raising it more? We are living in hard times right now.”

Would she consider not renewing her membership over Costco's move?

“Absolutely,” Pacheco said. She said that the increase may prompt her to shop at BJ's Wholesale Club instead.

BJ's also offers two memberships, one for $55 annually, and another that costs $100 a year, but like Costco's Executive Membership, comes with advantages. Both companies offer customers with the pricier membership 2% annual rewards on purchases, according to their websites.

The increase won't be enough to keep Jagriti Gambhir, 50, of Dix Hills, out of the Commack Costco.

The raised membership fees are “completely OK because milk [from] Costco is like $3 a gallon and every other store is $5 to $6 a gallon,” Gambhir said. “If you buy milk for a month from Costco, you save money, so it's OK, Costco is still the cheapest.”

Some Costco shoppers even said they understood why the company implemented the fee hike.

“I don’t see how they can’t increase it because the cost of everything has gone up so astronomically,” Cori Malaby of Melville said. “It pains me but I don’t think it's Costco’s fault.”