Costco will raise its annual membership fees, one of its primary sources of revenue, for the first time in over six years. Gold Star, Business and Business Add-On memberships will increase from $60 to $65 on Sept. 1, 2024, and Executive memberships will rise from $120 to $130. Back in May 2023 Costco said it would delay planned membership fee hikes, citing the impact of inflation on consumers.
The change will affect approximately 52 million paid memberships, approximately half of which are Executive Memberships, according to a prerecorded message from Josh Dahmen, AVP of Financial Planning and Investor Relations at Costco. Along with the fee hikes, Costco also is raising the maximum annual 2% cash back total from $1,000 to $1,250 per member.
In September 2022 Costco competitor Sam’s Club increased its annual fee from $45 to $50, with Plus membership fees rising from $100 to $110. At the time it was the first fee increase at that warehouse retailer in nine years.
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