Costco is raising membership fees for the first time in 7 years
While Costco's $1.50 hotdog price is staying put for now, the same can't be said for its membership fees.
Starting Sept. 1, "Gold Star" membership in the U.S. and Canada will cost $65, up from $60. "Executive Memberships" will go from $120 to $130, with the membership's maximum annual 2% reward increasing from $1,000 to $1,250.
It's the first time Costco has announced a price hike since 2017.
Costco says the fee increase will impact about 52 million memberships, a little over half of which are executive memberships. The retailer operates 882 warehouses, 609 of which are in the U.S. and Puerto Rico.
Costco Chief Financial Officer Gary Millerchip hinted at an upcoming fee hike during a May earnings call, noting that the members-only warehouse retailer raises its membership “every five years or so" and that it's a matter of "when we increase the fee, rather than if we increase the fee.”
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Membership fees are a major source of revenue for Costco, generating $1.12 billion in the most recent quarter. Costco on Wednesday also reported net sales of $24.5 billion for the five weeks ending July 7, up 7.4% from the year prior.