ISSAQUAH, Wash. — Shoppers used to finding great deals at Costco are going to be paying a little more for the advantage.
The bargain retailer announced members will be paying an additional $5 to $10 a year. The warehouse chain announced an 8% increase in its membership rates effective Sept. 1. It’s the first rate hike for Costcol in seven years.
Costco has more than 700 warehouses in the U.S. and Canada. The membership fee hike was announced as part of a monthly sales report Wednesday.
The new fees will raise the price of Costco’s basic Gold Star membership from $60 to $65 annually, while the cost for the premium Executive membership will increase from $120 to $130. The annual fee had remained the same since 2017, despite several years of unusually high inflation rates that finally have been cooling down in recent months.With inflationary pressures squeezing household budgets, Costco’s commitment to offering low prices on a wide range of food and other merchandise has helped make its warehouse an even more popular shopping destination, the retailer pointed out in a release posted to its website. That has helped boost its profits, making its stock a hot commodity to investors. Costco’s shares have nearly doubled during the last 18 months, increasing the company’s market value by about $180 billion during that span, the release noted.
Besides the fee increase, Costco disclosed its sales for the five-week period ending July 7 rose by 7% from the same time last year to $24.48 billion.
