Home Business Costco increases membership fees for first time since 2017—see new costs.

Costco increases membership fees for first time since 2017—see new costs.

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Costco increases membership fees for first time since 2017—see new costs.

Costco Wholesale has announced a membership fee increase for its US and Canada customers, marking the first hike in seven years. The retailer offers a variety of incentives to members, including discounts on food, gas, insurance, travel, and groceries, as well as an annual 2% reward on qualified purchases. The annual fee for “gold star” and business members will rise by $5 to $65, while executive members will see an increase from $120 to $130, with the maximum annual 2% reward for executive members increasing to $1,250.

With around 52 million members affected by the fee hike, Costco’s shares rose 2.2% in extended trading following the announcement. The increase in membership fees had been anticipated by market experts and is expected to provide a boost to revenue and stock performance. Membership fee revenue has already shown a 7.6% increase in the third quarter, accounting for 1.9% of the company’s total revenue for fiscal 2023. Additionally, Costco reported a 7.4% increase in net sales for the retail month of June.

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