Costco Wholesale is one of the most popular stores worldwide. The company is famous for offering discounted prices to customers on everything. The store provides price slashes on food, clothing, electronics, home decor, and more.
However, to keep its prices as low as possible, Costco simplifies the shopping experience. It offers a warehouse-style layout, which is only available to its members. Fortunately, it’s reasonably affordable to be a member of Costco.
Coupled with the significant price slashes, shoppers agree it pays for itself in no time. However, the conglomerate announced an increment in membership fees. Although not immediately, Costco will increase its membership fees for the first time in more than five years.
On Thursday, December 14, 2023, Costco executives made the announcement. They announced on a collective call that the group decided that membership fees would increase soon. However, they did not report the difference in cost.
ALSO READ: Walmart Announces More Store Closure Amid Rising Costs
While speaking to the press, CFO of Costco Wholesale Corp. Richard Galanti said the increase is a “matter of when, not if.” He continued, “You’ll see it happen at some point, and we can’t really tell you if it’s in our plans or not.” Galanti added, “We’ll let you know when we know.”
“We haven’t needed to do it,” Galanti said. “At this juncture, we feel pretty good about what we’re doing.” According to reports, Costco typically raises membership prices every five to six years. Hence, the wholesale giant last raised its membership fee in June 2017.
Hence, Galanti said it shouldn’t surprise members since the company has maintained its membership fee since 2017. In addition, the CFO expressed that the company takes its members’ satisfaction very seriously. He claims that members can expect an improved shopping experience with this increase.
Galanti further stated that Costco will soon have an app. He said the app will allow its shoppers to check prices and inventory before heading to their local store. In addition, Costco plans to offer its members medical care very soon.
The medical care reportedly includes virtual primary-care visits for only $29 and in-person care for just $79. Besides the newly added benefits, Galanti wants Costco members to understand that the membership fee increase is due to inflation.
ALSO READ: DOJ Accuses Army Employee of Stealing Over $100 Million From Military Youth Program
He said the company considered inflation when deciding on fees and price tags on its hundreds of products and gasoline. Galanti added that he and his team are working to keep products affordable for members despite skyrocketing prices in Costco stores and nationwide.
According to reports, Costco has 124.7 million members worldwide as of May 2023. Depending on their membership choice, these members currently pay between $60 and $120 annually. For $60, shoppers can visit any Costco warehouse or gas station for personal use.
However, those who pay $120 for the Executive membership enjoy two household cards and $2 back on all Costco purchases. Also, they enjoy various other perks. Although no one knows how much the increase will be, history shows the company usually adds about $5.
Membership fees are a critical revenue stream for Costco. In the first quarter of 2023, the company generated $1.08 billion. While the proposed increase in membership fee isn’t definite yet, Galanti assured members it will remain affordable.
You Might Also Like
Mississippi Auditor Slams Ex-NFL Quarterback Favre Over Misspent Welfare Money
Man Scores Huge Win in Mistaken Identity Lawsuit Against Oklahoma’s Largest Newspaper
Kelly Clarkson Rocks Grammys Red Carpet With 7-Year-Old Son
Washington Therapist Blasts Hospital for Forcing Teen Gender Transitions
