Economic Rules Hub
  • World
  • Politics
  • Business
  • Investing
Home Business Costco hikes membership fee for the first time since 2017
Business

Costco hikes membership fee for the first time since 2017

by admin July 11, 2024
July 11, 2024

You’ll soon have to pay more if you want to shop at Costco.

The membership-based warehouse club said Wednesday that it will increase its membership fee by $5 in the U.S. and Canada as of Sept. 1. That’s an increase to $65 from $60 for annual memberships. Its higher-tier plan, called “Executive Membership,” will increase to $130 a year from $120.

Costco said the fee increases would affect around 52 million memberships, a little over half of which are executive memberships.

Shares rose about 2% in extended trading Wednesday.

It marks Costco’s first membership rate increase since June 2017. On average, the company has raised rates roughly every five and a half years — which would have put Costco on track to raise the fee in late 2022 or early 2023.

However, Costco held off on raising fees prior to now. In interviews with CNBC, CEO Craig Jelinek previously said it wasn’t the right time as consumers dealt with high inflation. The company’s CFO Richard Galanti made similar comments on prior earnings calls.

Costco relies on membership fees to drive most of its revenue and help keep merchandise prices low. Its rival, Walmart-owned Sam’s Club, hiked its own membership fee in 2022 for the first time in nine years. Yet even after the fee bump, a Sam’s Club membership was cheaper — at $50 for club members and $110 for members of its higher-tier level, “Plus,” on an annual basis. At BJ’s Wholesale, annual membership fees are $55 and $110, for club members and its own higher tier, respectively.

Costco said it stepped up enforcement last year to make sure shoppers weren’t using other members’ cards. It added an extra check for memberships in self-checkout aisles. The moves were reminiscent of Netflix, which has also cracked down on people who use its service without paying.

This post appeared first on NBC NEWS

0
FacebookTwitterPinterestEmail
previous post
The Fed may soon cut interest rates. That could make your next trip abroad more expensive
next post
Nevada Sunrise Initiates Data Review to Develop New Drill Targets at the Coronado Copper Project, Nevada

Related Posts

Shein and Temu see U.S. demand plunge as loophole for...

June 6, 2025

This California startup is cleaning water and removing CO₂ from...

June 6, 2025

Nationwide coordinated retail crime crackdown results in hundreds of arrests,...

June 5, 2025

McDonald’s Snack Wrap is officially making a permanent return

June 5, 2025

OpenAI tops 3 million paying business users, launches new features...

June 5, 2025

Elon Musk’s Neuralink raises $650 million in fresh capital

June 4, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • What we know about the countries on Trump’s travel ban list, and how many people will be impacted

      June 6, 2025
    • Israel strikes southern suburb in Beirut

      June 6, 2025
    • What is D-Day? How the Normandy landings led to Germany’s defeat in World War II

      June 6, 2025
    • Russia launches aerial assault on Kyiv days after Ukraine’s audacious drone attack on bomber fleet

      June 6, 2025
    • North Korea refloats destroyer that capsized during launch, surprising naval analysts

      June 6, 2025

    Categories

    • Business (1,393)
    • Investing (3,399)
    • Politics (4,546)
    • World (4,458)
    • Email Whitelisting
    • Terms and Conditions
    • Privacy Policy
    • Contacts
    • About us

    Disclaimer: EconomicRulesHub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 EconomicRulesHub.com | All Rights Reserved

    Economic Rules Hub
    • World
    • Politics
    • Business
    • Investing