Costco's first membership fee increase in 7 years now in effect
Costco says price hike to effect 52 million memberships in US and Canada
Costco’s plan to raise the price of its membership for the first time in seven years took effect Sunday.
The wholesale club increased annual membership fees by $5 and $10 in the U.S. and Canada, with "gold star" and business memberships up from $60 to $65, and executive memberships increasing to $130 from the earlier $120, the company said.
The cost increase will impact around 52 million memberships, a little more than half of which are the club’s executive members, Costco said in a July press release.
Costco last raised membership fees in June 2017.
COSTCO RIVAL CHANGES KEY PERK POLICY, BUT IT COULD BACKFIRE
The cost of a Costco membership increased for the first time in seven years on Sunday. (Marlene Awaad/Bloomberg via Getty Images, File / Getty Images)
Membership with the wholesale giant comes with a multitude of perks such as testing of free samples; discounts on food, gas, home insurance, travel and grocery items; and an annual 2% reward on qualified purchases at its 882 warehouses worldwide.
Costco announced the price hike in July, saying that the increase would impact an estimated 52 million memberships. (Eric Thayer/Bloomberg via Getty Images, File / Getty Images)
COSTCO-LOVING MAN CAUGHT OFF GUARD BY LOVED ONES IN STORE FOR HIS SURPRISE BIRTHDAY PARTY
Costco reported $19.26 billion in net sales in the July retail month, which ended on Aug. 4. This was up 7.1% from 2023.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORP. | 915.03 | +14.63 | +1.62% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Revenues from membership fees were up 7.6% in the third quarter of fiscal 2023. Membership fees made up 1.9% of the company's total revenue for the fiscal year.
Fox Business’ Pilar Arias contributed to this report.