(NEXSTAR) – After warning customers of an impending price hike for years, Costco has finally raised its annual membership fees.
The increased fees — which affect customers at all membership levels — officially went into effect on Sept. 1. New members at the Gold Star and Business levels now pay $65 per year (up from $60) while Executive members pay $130 (up from $120). Existing members will be charged the new rate upon renewal of their annual memberships.
As previously mentioned, Costco’s decision to increase its annual membership fees hasn’t been much of a secret. Former Costco CFO Richard Galanti had often spoken of an impending fee increase, though he hadn’t pinpointed a time frame.
“It’s a question of when, not if,” Galanti said during an earnings call in September 2023, echoing previous statements he had made in past calls.
Costco had last raised membership rates in June 2017, from $55 to $60 for Gold Star and Business members, and from $110 to $120 for Executive members. In the 15 years prior to 2017’s membership increase, the company had hiked that rate only three times, or about once every five years and seven months, on average, as Galanti noted in a 2022 earnings call.
The most recent rate increase in Sept. 2024 came over six years since the last one in 2017, even despite historic inflation. Galanti himself, however, had said in June 2023 that inflation had actually contributed to Costco’s decision to refrain from raising its membership fees.
“Our view right now is that we’ve got enough leverage out there to drive business,” Galanti told investors at the time. “We feel that it’s incumbent upon us to be that beacon of light to our members in terms of holding [the same fee] for right now.”
It’s far too early to say when Costco might plan to raise fees once again. But if the former average that Galanti had mentioned holds true (i.e., a rate hike every five years and seven months), customers could expect yet another fee increase sometime around April 2030.
Costco, meanwhile, maintains that these rising fees — whenever they increase — are ultimately beneficial for consumers.
“Our membership fees help to offset operational costs so we can keep our prices low,” reads a message posted alongside details of the company's current annual rates. “A modest increase in fees will allow us to bring our members even greater value.”
