Costco Membership Cost Is Due to Rise
Costco hasn’t raised its membership dues in five years, but if the giant warehouse club chain stays true to form, expect an increase in late summer.
That’s because Costco has increased its membership fees by $5 to $10 every five-and-a-half years. That cycle kicks in this summer.
Currently, Costco has two levels of membership: Gold Star, which is $60 annually; and Executive, which is $120 each year.
One analyst who covers Costco has projected Costco will raise Gold Star membership to $65 and Executive membership to $130. John Heinbockel, an executive analyst with Guggenheim Securities in New York, wrote in a research note that the price increase would occur in August or September, based on Costco’s track record, according to Yahoo Finance.
Track Record of Costco Membership Increases
The last time Costco increased membership fees was in 2017. Gold Star membership, at the time $55, went to $60. Executive membership went from $110 to $120. Previous Costco membership raises were in 2006 and 2011.
Costco has more reasons to pad its bottom line with a membership dues increase other than it fits in the timing. Like other retailers, Costco has seen waves of rising costs since the start of the pandemic. Supply chain nightmares, inflation, runs on COVID-related goods, more people voluntarily or otherwise homebound, and an unprecedented labor shortage are forcing retailers to find ways to boost profits. A chain whose retail model includes membership dues for its customers has to look toward raising membership fees as an option.
A Costco membership price raise this year is doubly bad news for Amazon Prime members. Amazon is also due to raise its Amazon Prime membership fees in 2022.