Costco to Raise Membership Prices for First Time in Seven Years
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Costco has confirmed that it will raise its membership prices for the first time in seven years, effective September 1. The cost of a Gold Star membership in the U. S. and Canada will increase by $5, bringing the annual fee to $65, while Executive memberships will rise from $120 to $130. Additionally, the maximum annual 2% reward associated with Executive memberships will increase from $1,000 to $1,250.
This change will affect over 52 million memberships, with more than half being Executive memberships. The announcement comes as Costco reports a 6. 9% increase in net sales for the first 44 weeks of the year, reflecting a trend of rising prices for popular goods. CFO Richard Galanti had previously hinted at the inevitability of the membership price increase, emphasizing that it was "a question of when, not if. " Costco currently operates 882 warehouses globally, with 609 located in the United States.
This adjustment in membership fees may signal a strategic move to maintain profitability amid rising operational costs.