Costco’s first membership price hike in 7 years just went into effect
CNN
Costco customers are now paying more for their annual memberships for the first time since 2017.
Costco customers are now paying more for their annual memberships for the first time since 2017. The retailer announced in July that membership fees would increase by $5 to $65 a year in the US and Canada for three of its plans: “Gold Star,” “Business” and “Business Add-On.” The changes started for new members signing up on or after September 1 and renewals occurring after that date. The price of Costco’s premium “Executive Membership” also went up, by $10 to $130 a year. However, those members will soon be able to earn a maximum of $1,250 in rewards annually versus $1,000 currently. The company estimated that 52 million memberships will be impacted, a little over half of which are Executive members, Costco previously said. Annual fees have been one of the biggest profit-generating areas for Costco, helping it offset expenses to keep its prices down. Last year, Costco earned $4.6 billion in revenue from membership fees, an 8% increase from 2022. The fee hikes come as Costco, like streaming companies, has been taking more measures to ensure fewer non-subscribers are hitching a ride on other customers’ memberships.
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