Costco is one of America’s most beloved membership warehouse chains — there are fan Facebook groups and some devout fans have even gotten married inside the store. With almost 900locations in nine countries and nearly 137 million cardholders, Costco is also one of the largest membership warehouse chains worldwide. But how does the whole thing work? Is it a grocery store? Do they sell couches? Can I get my tires rotated there? The answer to all these questions is, “yes.”
Below, I break down everything you should know about Costco, from its recently increased annual membership fees to the store’s various offerings. I’ve been a Costco member for several years, and I’ve personally used and enjoyed many of these services.
Related
Want more from NBC Select? Sign up for our newsletter, The Selection, and shop smarter.
What is Costco?
Costco is a warehouse club, which means, unlike typical grocery stores, it sells goods in bulk in order to provide discounted prices. Aside from groceries, it also sells clothing, toys, electronics and more. When Costco opened its first store in the 1970s, it initially sold only to small businesses but it expanded to cater to individuals in the 1980s.
Do you need a membership to shop at Costco?
Yes, you need a membership in order to shop at a Costco. If you know someone with a membership, they can bring you with them to the store, but the primary cardholder will have to make all purchases.
It is possible to shop via Costco’s website without a membership, but non-members have access to only select deals, and online prices are often higher than in-store ones.
How much is a Costco membership?
There are three types of Costco memberships, all of which give you access to every Costco location worldwide:
The Gold Star Membership is the cheapest option for customers who aren’t affiliated with a business. The annual membership fee is $65, and a total of two people over the age of 18 living at the same address can use the membership. This membership also allows you to shop online and in stores.
The Executive Membership costs $130 a year and comes with a total of two Household Cards. This tier offers greater savings on Costco services and select Costco Travel packages, as well as an annual 2% reward on qualified Costco purchases. With some strategic shopping, the higher fee may be worth it. For instance, if you spend $3,000 annually on qualified purchases like groceries, furniture and electronics, you’ll receive $60 back, which is roughly the cost of the tier upgrade. This membership also allows for exclusive shopping hours that Gold Star members don’t have access to.
The Business Membership also costs $65 a year, but is exclusively for business owners to buy products for business, personal and resale use. The membership has the option to add a member of your household for no extra charge or you can add additional cardholders for $65 a year. In order to qualify for the Business Membership, you have to show some type of business identification, like a business license or three types of business ID.
Benefits of a Costco membership
Every Costco member has access to benefits like discounted contact lenses, travel packages and more, with greater savings on Costco services and select travel packages available to Executive members.
Food and grocery discounts
Costco is perhaps best known for its bulk discounts on groceries and other household essentials, with deals ranging from a two-pack of 1 ½-liter bottles of Listerine to a 30-pack of Lorna Doone Shortbread Cookies.
Some of Costco’s best deals are on products from its popular in-house brand, Kirkland Signature: A 120-pack of Breakfast Blend K-Cup Pods, for instance, is $44.99, while an 80-count McCafé Premium Roast Coffee K-Cup Pods is $57.99. Under the Kirkland name, Costco also sells clothing, vitamins, beauty and skin care items, pet food, pans and more.
Costco members in certain locations have access to same-day delivery via Instacart to have perishables delivered to your door. But if you’re taking home your own groceries (or anything, really), you need to bring your own bags. I personally prefer to bring large boxes since they’re easier to carry up the stairs to my condo.
Gas discounts
Outside of groceries and home essentials, Costco is known for its comparatively low gas prices. The conglomerate sells its own Kirkland Signature Gasoline, which is designed with deposit control additives to help clean your car’s engine and keep it running smoothly, according to the company. You can find nearby locations with gas stations via Costco’s website.
Clothing and home goods discounts
Whether you need a couch, an air fryer, a TV or running shoes, Costco has a vast selection of clothing, furniture and other home essentials from popular brands like Adidas, Casper, and LG. With a Costco membership, you also get in-home delivery and installation on major appliances as well as a two-year Costco extended warranty. Costco also constantly offers additional markdowns on certain brands and products, so make sure to check its website for promotions.
Travel discounts
Both Gold Star and Executive members have benefits through Costco Travel, but only Executive members earn 2% rewards with purchases, according to the brand. Members can book car rentals, vacation packages, cruises, hotel stays and more, but only with Costco’s travel partners — when booking a car, for instance, you can only choose from Alamo, Avis, Budget and Enterprise. And Costco’s prices aren’t always the cheapest available, so compare across booking sites before making reservations.
Auto discounts
A Costco membership (both Gold Star and Executive) can score you discounts on new and pre-owned vehicles. The Costco Auto Program will connect members to local, pre-vetted pre-owned-vehicle dealers offering prearranged pricing for Costco members. If you already own a car, Costco also sells discounted tires (which come with a five-year Road Hazard Warranty) and batteries and offers services like rotations, balances, nitrogen tire inflation and more.
Insurance, optical and other health discounts
Costco provides discounted home and auto insurance to members through CONNECT, powered by American Family Insurance. Like other insurance providers, CONNECT offers additional discounts for students, safe drivers and more. Costco also sells health and vision insurance, life insurance and pet insurance, and certain plans are available for business owners as well as individuals.
Pharmacy and medication discounts
Anyone can fill their prescriptions at a Costco Pharmacy, often at a competitive price compared to other pharmacies. Costco also offers the Costco Membership Prescription Program to members at no additional charge — it gives access to savings on prescriptions, though you cannot use it on top of your health insurance.
Home product-installation discounts
If you’re remodeling your house, redoing the floors or looking to install some new shelves, all members can book these and other home services through Costco. When you work with one of Costco’s partners, you receive a Costco Shop Card worth 10% of the cost of the service. I worked with Costco to install new shelves, for instance, and got a $350 gift card that paid for a month’s worth of groceries.
Photo printing discounts
Costco has a Photo Center where members can print posters, photo books, calendars, cards and more.
Costco Anywhere Visa card
Costco members have exclusive access to the Costco Anywhere Visa card, a Citi credit card with a robust rewards program. In addition to 2% cash back on eligible purchases from Costco, cardholders also get 4% cash back on eligible gas purchases up to $7,000 per year, 3% cash back on restaurants and eligible travel purchases and 1% cash back on everything else, distributed annually. Keep in mind that your Costco membership has to be active and the rewards can be used at Costco or exchanged at a warehouse for cash. There are some other credit cards with great rewards for Costco purchases to also consider, like the Chase Freedom Unlimited card and the Wells Fargo Active Cash Card.
How does Costco’s membership compare to other wholesale warehouse memberships?
If you are currently weighing the pros and cons of a Costco membership, then it’s likely that you’re also considering what other warehouse clubs like BJ’s and Sam’s Club have to offer. Here are two of the biggest differences to consider:
The BJ’s Inner Circle Membership is similarly priced to Costco’s Gold Star Membership at $60 a year. The BJ’s Club+ Membership is $120 a year. Unlike Costco, though, BJ’s accepts manufacturer’s coupons and you can stack them on top of the store’s built-in savings.
Sam’s Club’s Basic Membership is also similar in price at $50 a year. However, it has more limited service offerings than Costco — it doesn’t include pharmacy savings, optical savings or free shipping online, for example. The Sam’s Club Plus Membership is $110 a year.
Related
Why trust NBC Select?
Morgan Greenwald is a former editor for NBC Select, who covered home, wellness, sales, gift guides and more.
Cory Fernandez is a commerce editor at NBC Select, where he writes about home and kitchen appliances and retailer membership guides. He’s written guides on REI’s membership program and Wayfair’s rewards program.
Catch up on NBC Select’s in-depth coverage of tech and tools, wellness and more, and follow us on Facebook, Instagram, Twitter and TikTok to stay up to date.
