OAN Staff James Meyers
11:18 AM – Thursday, July 11, 2024
Costco announced on Wednesday that it will be raising its membership fees at the start of September, leading to its first price hike since 2017.
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Costco Wholesale said that the increase in annual membership fees from $5 to $10 in the U.S. and Canada will take effect on September 1st. It is the first time in seven years the retail giant has done so.
The annual fee, last raised in June 2017, would increase by $5, making it $65 for “gold star” and business members, and to $130 from the earlier $120 for executive members, Costco said.
“The fee increases will impact around 52 million memberships, a little over half of which are Executive,” the company’s press release stated.
Annual fees have been one of Costco’s main sources of income, helping it defray costs and maintain low rates. Membership fees brought in $4.6 billion for Costco last year, an increase of 8% over 2022.
On Wednesday, Costco also announced that net sales were up 7.4% for five consecutive weeks ending on July 7th, at least in comparison to last year.
Additionally, shares of Costco increased over 2% in after-hours trading following the latest news.
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