It’ll Cost You More To Save At Costco
Sure. Why not. Everyone raises their prices. Costco announced that their membership fee is going up.
Costco, America’s largest wholesaler, said Wednesday it plans to raise its annual membership fees by 10 percent — a move that will affect some 22 million members.
But, is it just the rising cost of doing business or is there more to the story?
The news came as the warehouse club operator reported a fourth-quarter profit that missed analysts’ forecasts. The fee increase will take effect Nov. 1 for most U.S. and Canadian members. Costco hasn’t raised its main fees since 2006.
Either way, it’s the first increase in five years for Costco.
“I think Costco was very reluctant to take a membership fee increase, which is essentially inflation of the membership fee, when their core customer was already dealing with a lot of inflation,” Sanford Bernstein analyst Colin McGranahan told Reuters.
Costco will increase annual membership fees by $5 for U.S. Goldstar (individual), Business, Business add-on and Canada Business members. The increase means all U.S. and Canada Goldstar, Business and Business add-on members will pay an annual fee of $55.
Fees for U.S. and Canada Executive Members will increase from $100 to $110