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Sat. Jul 13th, 2024

Costco raises annual membership dues from $5 to $10 for first time since 2017

By meerna Jul11,2024
Costco raises annual membership dues from  to  for first time since 2017

FILE - People enter a Costco Warehouse in Cranberry Township, Pa., Friday, March 29, 2024. Bargain hunters at Costco will have to pay an extra $5 to $10 per year as the popular warehouse chain prepares to raise membership fees for the first time in seven years. (AP Photo/Gene J. Puskar, File)

FILE – People enter a Costco Warehouse in Cranberry Township, Pa., Friday, March 29, 2024. Bargain hunters at Costco will have to pay an extra $5 to $10 per year as the popular warehouse chain prepares to raise membership fees for the first time in seven years. (AP Photo/Gene J. Puskar, File)

ISSAQUAH, Wash. (AP) — Bargain hunters at Costco will have to pay an extra $5 to $10 a year as the popular wholesale chain prepares to raise membership fees for the first time in seven years.

The Issaquah, Washington-based company revealed in its monthly sales report Wednesday that entry fees at its more than 700 warehouses in the U.S. and Canada will increase by 8% in the coming days.


The new fees, set to go into effect Sept. 1, will raise the price of a basic Gold Star membership at Costco from $60 to $65 per year, while the cost of a premium Executive membership will increase from $120 to $130. The annual fee has remained the same since 2017, despite several years of unusually high inflation, which has finally begun to calm down in recent months.

With inflationary pressures squeezing household budgets, Costco’s commitment to offering low prices on a wide range of foods and other goods has helped make its warehouse an even more popular place to shop. In turn, that has helped boost profits, making its stock a hot commodity among investors. Costco’s stock has nearly doubled in the past 18 months, adding about $180 billion to its market value over that period.

Costco shares rose more than 2% after news of the fee hike and recent sales growth broke. If the stock performs similarly in Thursday’s regular session, the stock will hit a new high.

In addition to the fee hike, Costco disclosed that its sales for the five-week period ending July 7 were up 7% compared with the same period last year, reaching $24.48 billion.

By meerna

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