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Mon. Jul 22nd, 2024

Costco to Raise Membership Dues in September – Indianapolis News | Indiana Weather | Indiana Traffic

By meerna Jul11,2024
Costco to Raise Membership Dues in September – Indianapolis News | Indiana Weather | Indiana Traffic

ISSAQUAH, Wash. (WISH) — Costco announced Wednesday that it will raise membership fees on Sept. 1.

In the United States and Canada, membership fees for Gold Star and Business members will increase from $60 to $65. Executive membership fees will increase from $120 to $130.

In addition, the maximum annual “2% reward” associated with Executive membership will increase from $1,000 to $1,250.

“The fee increases will affect approximately 52 million members, just over half of whom are Executive members,” the company said in a press release.

This is the first increase in membership dues since 2017.

Costco’s hikes come more than two years after major rivals Sam’s Club and Amazon raised their membership fees. CNN reports that annual fees have been one of the biggest profit drivers for Costco, helping it balance expenses and keep prices low. Costco made $4.6 billion in revenue from membership fees last year, up 8% from 2022.

As CNN reports, the fee increases also come as Costco, like streaming companies, is taking more steps to reduce the number of people using other customers’ subscriptions.

Costco calls its members-only stores “warehouses.” Indiana has nine warehouses: three in Indianapolis and others in Avon, Evansville, Fort Wayne, Granger, Merrillville and Noblesville.

Also on Wednesday, Costco announced that net sales rose 7.4% for the five weeks ended July 7 compared with the same period in 2023.

Costco shares rose more than 2% in after-market trading on the news.

By meerna

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