What: Costco has announced the first increase of their membership fee in 7 years

Why it is important: 52 million memberships are affected.

Costco has announced an increase in its membership fees, the first adjustment since 2017. Effective September 1, the annual fees for U.S. and Canada Gold Star, business, and business add-on members will rise from 60 to 65 USD. Additionally, the executive membership plan will now cost 130 USD, up from 120 USD, with the reward cap increasing to 1,250 from 1,000 USD. This change impacts approximately 52 million memberships, over half of which are executive. The decision comes shortly after Gary Millerchip assumed the role of finance chief, under whom the company anticipates enhancing its digital growth strategies while maintaining its traditional values. This strategy aligns with Costco's consistent practice of increasing prices roughly every five years, affecting 35 million members in the last round. Despite the increase, Costco continues to perform robustly with a 9% rise in total revenue to 58.5 billion USD and net income growing to 1.68 billion USD in the recent quarter, boosting its shares by 2.6% in after-hours trading and a total of 34% year-to-date.

Costco to Lift Membership Fees for First Time in Seven Years