Costco shoppers will soon see a hike in membership fees, with the popular warehouse chain announcing its first increase in seven years. Starting September 1, the annual membership fees will rise by $5 to $10, as disclosed in the company’s latest sales report.
The new pricing structure will see the cost of a basic Gold Star membership rise from $60 to $65 annually, while the premium Executive membership will increase from $120 to $130 per year. This adjustment represents an 8% increase and marks the first change since 2017, despite recent years of high inflation, which has only started to ease in recent months.
Costco’s ability to maintain low prices on a broad range of goods has bolstered its popularity, especially as inflation pressures household budgets. This strategy has not only attracted more shoppers but also driven profits and made Costco’s stock highly desirable. Over the past 18 months, the company’s shares have nearly doubled, adding about $180 billion to its market value.
Following the announcement of the fee hike and the latest sales figures, Costco’s shares rose more than 2%. Should this trend continue, the stock is poised to reach a new high in Thursday’s regular trading session.
In addition to the fee increase, Costco reported a 7% rise in sales for the five-week period ending July 7, compared to the same period last year, totaling $24.48 billion.