Official: Costco delivers the most anticipated news about memberships and hits Walmart

Costco is known for its enormous size and competitive prices, but behind its gigantic stores lies a very particular business model that sets it apart from other retailers. For years, its memberships have been a topic of debate due to their cost, especially compared to other wholesale clubs.

Recently, Costco has confirmed news that many had desired: a special offer that makes its basic membership much more affordable. This initiative not only attracts new customers, but also puts direct competitors like Walmart and its club Sam’s Club, which have traditionally had lower prices, in check.

The offer that revolutionizes Costco's membership

Costco, unlike other conventional supermarkets, manages a limited inventory of about 4,000 products, much less than the 30,000 or more that other stores usually have. This strategy allows them to negotiate better prices and guarantee higher quality in their items. However, to access these benefits, it is necessary to pay an annual membership, which has been the subject of some controversy due to its price.

In September 2024, the basic Gold Star membership fee increased from $60 to $65, while the Executive membership rose from $120 to $130, according to The Street. Although this adjustment was the first in seven years, the cost is still higher than Sam’s Club, where the basic membership costs $50 and the Plus $110. Unlike Walmart, Costco rarely offers discounts on its membership, relying more on the value their products and services provide.

Groupon and the direct blow to Walmart

The big news comes with an unexpected alliance: Costco and Groupon have joined forces to offer an exclusive promotion. If you join the basic membership through Groupon before June 22, you'll receive a $50 digital gift card to use in-store or online. This means that, effectively, you'd pay only $15 for the membership in the first year, a price much lower than usual.

This offer is aimed exclusively at new members or those who haven't been members in the last 18 months; it doesn't apply to renewals or to upgrading membership. Despite these restrictions, the move has had a major impact on the market, since it offers a direct and economical incentive to attract customers who might previously have preferred cheaper options like Sam’s Club.

With this strategy, Costco not only strengthens its member base, but also sends a message to Walmart, showing that it can compete on price without losing its essence of quality. It remains to be seen whether this blow will force the competition to review their own membership policies and promotions in the coming months.