From CNBC: 2024-07-10 16:57:54

Costco will raise its membership fee by $5 in the U.S. and Canada as of Sept. 1, bringing annual membership to $65. The executive membership fee will increase to $130. This will impact around 52 million memberships, with over half being executive. Shares rose 2% after the announcement, the first fee increase since 2017. CEO Craig Jelinek previously postponed increases due to concerns about high inflation.

Costco’s reliance on membership fees is to maintain low merchandise prices. Sam’s Club, owned by Walmart, raised its membership fee for the first time in nine years in 2022. Even with the increase, Sam’s Club fees are lower than Costco’s, with basic membership at $50 and Plus at $110 annually. Costco has also increased enforcement to prevent card sharing, with extra checks in self-checkout aisles.



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