In breaking news, Costco has announced a membership fee increase, marking the first hike in seven years. Starting September 1, membership fees in the US and Canada will increase by $5 to $65 a year. Additionally, the premium “Executive Membership” fee will go up by $10 to $130 a year, with members now able to earn up to $1,250 in rewards annually.
Costco estimates that 52 million memberships will be impacted, with over half being Executive members. Annual fees have been a significant source of profit for Costco, generating $4.6 billion in revenue last year, an 8% increase from 2022.
The fee hikes come as Costco aims to prevent misuse of memberships by non-paying individuals. This move follows similar fee increases by rivals Sam’s Club and Amazon in recent years.
On a positive note, Costco also reported a 7.4% increase in net sales for the five weeks ended on July 7 compared to last year. In response to the news, shares of Costco surged over 2% in after-hours trading.
