News On Japan

Costco to Hike Membership Fees

TOKYO - Costco announced on February 3rd that it will raise the annual cost of its Gold Star membership by 440 yen to 5,280 yen, while the Executive membership, which offers a 2% rebate on purchases, will increase by 660 yen to 10,560 yen, starting May 1st.

The decision has prompted mixed reactions from customers. A shopper who has been a Costco member for ten years said they purchased ground pork and a Mexican salad wrap, describing their shopping experience as akin to visiting a theme park—both enjoyable and cost-saving. They acknowledged the rising costs, saying, “It’s unavoidable.” Another customer from a seven-person household stated that buying in bulk at Costco remains more economical than shopping at regular supermarkets, and the membership fee increase would not deter them from renewing. However, not all customers shared this view. A 15-year-long member pointed out that there are few exclusive benefits for members beyond the discounts, adding that if the annual fee were to rise to 6,000 or 7,000 yen, it might be too high for them.

Costco explained the reasoning behind the increase, stating that membership fees allow the company to provide products and services at the lowest possible prices. The company emphasized that the fee adjustment was necessary to maintain and improve the quality and value of its offerings.

The fee hike at Costco comes amid a broader trend of rising prices for subscription-based services. Many consumers are already dealing with increasing costs for various subscriptions, with some mentioning they are subscribed to services like Amazon Prime, Netflix, Disney+, YouTube Premium, and ABEMA. A survey of more than 4,000 people found that over half had used subscription services, but many admitted they had not considered the cumulative cost. One respondent said they subscribed to services on a case-by-case basis without calculating the total expense but acknowledged that as costs rise while wages stagnate, the financial burden is becoming more noticeable. Another subscriber, who had signed up for DAZN to watch J.League soccer, mentioned that the service had become significantly more expensive, leading them to consider canceling one of their subscriptions after realizing they were spending nearly 10,000 yen per month.

Price increases are affecting more than just groceries. In 2024, Netflix raised its monthly fees by up to 310 yen, while Amazon Prime increased its annual membership fee by 1,000 yen in 2023.

Source: FNN

News On Japan
POPULAR NEWS

Japan began applying a new numerical alcohol threshold for dangerous driving offenses on July 21, introducing a clearer standard for cases involving impaired driving that could lead to fatal accidents.

Prime Minister Sanae Takaichi's government approved its first annual basic economic and fiscal policy on Tuesday, pledging "responsible and proactive fiscal policy" and envisioning about 370 trillion yen in public- and private-sector investment in strategic industries through fiscal 2040.

A covert network of shuttle tankers is carrying crude through the increasingly dangerous Strait of Hormuz as renewed fighting between the United States and Iran disrupts shipping and raises concerns over how Japan will secure the oil it needs.

Russian Deputy Foreign Minister Andrey Rudenko has criticized moves by Japanese and Ukrainian companies to cooperate on drone technology, warning that such ties would be regarded by Moscow as a "clear hostile act."

The rainy season ended in the Kanto-Koshin and Tokai regions on July 20 as strengthening high pressure brought intense heat across Japan, with temperatures forecast to reach 38 C in Kumagaya, Saitama Prefecture, and Kofu.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks rebounded sharply on July 21 as investors bought back semiconductor and artificial intelligence-related shares after last week’s steep selloff, while attention shifted to upcoming U.S. technology earnings and the government’s new economic policy roadmap.

Japanese cash equities were closed for Marine Day on July 20, leaving investors to assess whether Tokyo can stabilize after last week’s technology-led rout as oil prices rose above $90 a barrel, the yen remained near four-decade lows and global markets braced for another test of the artificial intelligence trade.

Apple has raised prices for iPhones sold in Japan, with the top-end iPhone 17 Pro Max now costing more than 210,000 yen, as the prolonged weakness of the yen increases the local cost of products priced and managed in US dollars.

A tanker carrying about 1 million barrels of Mexican crude oil arrived off Yokkaichi, Mie Prefecture, on the morning of July 17, marking Japan's first such delivery since the Strait of Hormuz was effectively closed.

Tokyo stocks plunged on July 17 as a global selloff in semiconductor and artificial intelligence-related shares pushed the Nikkei 225 into correction territory, while Middle East tensions, higher oil prices and persistent yen weakness added to pressure on investors.

Nissan Motor unveiled a fully redesigned Elgrand minivan on July 17, marking the model's first complete overhaul in 16 years, while introducing a new brand message as the automaker seeks to rebuild its business and revive sales.

Seven & i Holdings is considering investing several hundred billion yen in Zabka Group, Poland's largest convenience store operator, as the Japanese retailer seeks to expand its presence in Europe.

Japanese manufacturers including Fanuc, Yaskawa Electric, Fujitsu, Hitachi, Kawasaki Heavy Industries and Komatsu announced new artificial intelligence initiatives on July 16 as Nvidia expanded its partnerships with Japan's robotics and industrial sectors.