Costco membership fees are expected to increase starting in 2021, the first time in four years
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- For the first time since 2017, Costco is expected to raise the price of its membership.
- Europeans are likely to see an increase first, starting this year, with the US following in 2022.
- The company last raised the price by $5 for a basic membership, and $10 for a premium membership.
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The annual cost of accessing Costco's low prices on groceries is about to increase, according to a new analyst note from Wells Fargo.
The grocery chain's Gold Star membership plan is expected to increase in price this year, for its basic "Everyday" and premium "Executive" memberships.
The prediction is based on the company's history of increasing its membership pricing gradually over time, approximately every 5.5 years. "The membership fee looks poised to increase in the next 18 months," the note viewed by Fox Business said, "and represents a potential catalyst for sales and earnings."
The last time Costco raised the prices of its membership programs, in 2017, it added $5 to the lower tier and $10 to the higher tier. Those increases represented just shy of a 10% jump; it currently costs $60 for a basic membership, and $120 for a premium membership.
The price increase would have a much greater impact on Costco's bottom line than it did back in 2017: There are over 108 million Costco members, as of February 14, according to the company.
Costco representatives were unable to be reached for comment as of publishing.
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