COSTCO announced it will raise the price of its membership plans for the first time in seven years on Wednesday.
The Costco membership fees will increase annually from $60 to $65 and the Executive Membership will go up from $120 to $130.
The Costco membership price increase will occur in the US and Canada on September 1, CNBC reported.
There will be 52 million members affected by the price update.
About half of these members are signed up for the executive plan.
Costco has raised its prices on average every five years.
It would have been on track to raise prices in 2022 but didn’t go through with it until now.
The last time prices were increased for Costco memberships was in 2017.
SLOW INCREASE
In the past, Costco executives said the company did not want to overwhelm its members with price increases due to inflation.
In 2022, Costco’s CEO Craig Jelinek was stern about not hiking the membership fee.
Jelinek said it was “not on the table right at the moment,” CNBC reported at the time.
“I made it very clear,” Jelinek continued.
“I don’t think it’s the right time.
“Our sign-ups continue to be strong.”
Costco is now notably higher in prices for its membership compared to competitors like Sam’s Club and BJ’s Wholesale.
Sam’s Club charges $50 for its membership and $110 for its higher tier.
The price for a membership at BJ’s is slightly higher at $55 but is also $110 for the next tier.
Costco membership sharing guidelines
Costco has strict rules for membership use that shoppers must follow and they've been cracking down on offenders in recent years.
- Primary Member Use: Only the primary cardholder can use this Costco membership card. Sharing it for purchases is not allowed as the photo on the card must match the person using it.
- Household Card: Each primary member can add one free household cardholder who lives at the same address. This person will receive their own membership card and can shop at Costco independently.
- Guest Policy: Members can bring up to two guests per visit to Costco. However, only the member can make purchases. Guests must be accompanied by the member.
- Authorized Cardholder: For an additional fee, you can add an authorized cardholder, such as a family member or friend, who doesn’t reside at your address. They will receive their own card and can shop independently.
Credit: Costco
MEMBERS REACT
Costco shoppers shared their input about the price increase on X.
“@Costco heard you’re bumping the price of membership up. Better super size those hot dogs,” one user wrote.
“It’s okay. It’s still within the range, considering the savings it offers on the many things it sells,” another said.
“That extra $5 better bring back the combo pizza,” someone suggested.
“That means I will be buying three fewer hotdogs each month,” another chimed in.
The U.S. Sun has reached out to Costco for comment.