Costco CFO hints that membership fees could increase

Costco’s chief financial officer hinted that the wholesale retailer could be raising its annual membership fees in the future.

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During an earnings call on Thursday, Richard Galanti said that membership fees have risen every five years, The Hill reported.

He said that a membership rate hike was “a question of when, not if.”

“Well, it certainly goes into the thought process,” Galanti said during the call. “We’re still not even to the average of the last three increases in terms of timing between the last one and the next one. What we’ve said again, and I’ll say again, is that our view is all the parameters, as it relates to member loyalty and value proposition that we’ve improved to our members, we have no problem thinking about doing it and doing it ultimately. So it’s a question of when, not if.

“But we feel that we’re in a very strong competitive position right now,” Galanti added. “And if we have to wait a few months or several months, that’s fine. And I’ll be purposely coy on when that might be.”

Costco’s most recent membership price increase occurred in June 2017, according to Fox Business.

Costco officials said they saw a revenue increase from its membership fees during the first quarter of fiscal 2023, Fox Business reported.

Currently, a Costco Gold Star membership is $60 annually, and an Executive membership costs $120, The Hill reported.

Costco competitor Sam’s Club raised its club membership for the first time in nine years, according to The Hill. The big box company also hiked its Plus membership for the first time since 1999, the website reported.

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