HomeNewsNationalCostco Raising Membership Fees For The First Time In Years

Costco Raising Membership Fees For The First Time In Years

Costco Wholesale announced its plans to increase its annual membership fees for its U.S. and Canada customers for the first time since June 2017, the Associated Press reports.

The current “gold star” and business membership price will increase from $60 to $65, while the executive membership fee will increase from $120 to $130, effective September 1. The big-box warehouse club retail chain’s membership offers discounts on food, gas, home insurance and grocery items, as well as an annual 2% reward on qualified purchases.

Costco said the raised fees could result in its maximum annual 2% reward for executive members increasing from $1,000 to $1,250. The changes will affect an estimated 52 million members, half of whom are already paying the executive membership fee, the store confirmed.

Costco has benefited from its commitment to offering low prices amid inflation with shares nearly doubling and its market value increasing by about $180 billion during the past 18 months, the AP reported. The store’s shares rose by more than 2% following news of the fee increase, as well as its latest sales gains being shared publicly.

Costco disclosed its sales for the five-week period ending on July 7 increased by 7% to $24.48 billion since the same time period one year prior.

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