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Accessibility statementSkip to main content Democracy Dies in Darkness SubscribeSign in Advertisement Democracy Dies in Darkness Business COSTCO IS RAISING MEMBERSHIP FEES. DON’T WORRY, HOT DOGS COST THE SAME. Basic members will pay $5 more per year and executive members will see a $10 increase as the company raises fees for the first time since 2017. 3 min 294 Sorry, a summary is not available for this article at this time. Please try again later. The Costco logo is seen above a gas station in Hawthorne, Calif. (Patrick T. Fallon/AFP/Getty Images) By Andrew Jeong July 11, 2024 at 3:59 a.m. EDT Costco shoppers will see their membership fees go up for the first time since 2017, the company said Wednesday, betting the move will boost profits without turning off its loyal customer base. Starting Sept. 1, Costco Gold Star, Business and Business add-on members in the United States and Canada must pay $65 for annual memberships, up from $60. Get a curated selection of 10 of our best stories in your inbox every weekend. Executive members will have to pay $130, a $10-per-year increase. The move will affect 52 million members, “a little over half of which are Executive,” Costco said in a news release. Executive members are offered up to $1,000 in rewards for their purchases. The maximum rewards will increase to $1,250 with the fee hike, the company said. Story continues below advertisement The fee increase comes despite Costco defending its image as a place to find low-priced bulk goods in an economy struggling with inflation. On an earnings call in late May, Gary Millerchip, the company’s chief financial officer, told investors that Costco’s hotdog-soda combo would continue to be sold at $1.50 — a price that hasn’t changed since the 1980s — a move that won widespread acclaim. Advertisement Millerchip also said on the May call that he was not ruling out a membership fee increase, adding that Costco considers raising membership fees every five years or so. GET CAUGHT UP STORIES TO KEEP YOU INFORMED PreviousNext Appeals court blocks Biden’s student loan repayment plan * Republican-led states have challenged the Save program’s legality. * The administration put loans from all Save enrollees in an interest-free forbearance in response. * The Save program provides lower monthly loan payments and a faster path to cancellation. SparkleSummary is AI-generated, newsroom-reviewed. See moreExpand content The Persian Gulf is enduring life-threatening heat indexes above 140 degrees * Factoring in humidity, some areas this week felt like 140 to 150 degrees F (60 to 65 C). * This was fueled by an intense heat dome, excessive dew points and human-caused climate change. * Nighttime temperatures also stayed exceptionally warm, and water temperatures reached 95 F (35 C). 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There are ways to get relief. * Social anxiety disorder affects 1 in 10 adults and teens. * It is inked to harsh self-judgment and fear of rejection. * Strategies to reduce anxiety include self-compassion, exposure therapy and emotional literacy. SparkleSummary is AI-generated, newsroom-reviewed. See moreExpand content “Despite inflation, Costco has kept prices low,” said Felipe Caro, a professor at the UCLA Anderson School of Management. “But the membership fee eventually had to go up, and it makes sense to do it now when customers really notice its value. Costco’s stock price went up after the announcement, so the market agrees that it was the right decision at the right time.” Story continues below advertisement Costco’s shares rose more than 2.5 percent after the announcement. Share this articleShare The company posted net income of $1.68 billion in the 12-week period ending May 12. That figure incorporates the $1.12 billion in membership fees it took in during the quarter. Costco earned nearly $4.6 billion in annual membership fees in the fiscal year that ended in early September, an 8 percent increase from the previous year. Advertisement However, the extra fees could hurt Costco’s ability to attract new customers and retain relatively newer members who may not be as loyal as longtime customers, according to Dinesh Gauri, a professor of marketing at the University of Arkansas. “I do not think they have provided any other offering or new services … to shoppers to justify the fees increase,” he said. Shoppers who are not loyal or who joined recently may consider buying at rivals such as Sam’s Club, Gauri added. Story continues below advertisement Sam’s Club, a wholesaler like Costco, raised membership fees in 2022. It now charges $50 for a basic membership and $110 for a Plus membership, up from $45 and $100, respectively. Customers could also switch to rivals that do not require memberships, such as Target and Kroger, according to Gauri. These companies have “stepped up their game” in recent years, he added, while offering what he views as stronger pickup and delivery options than Costco. “If anyone does not need membership, they may not miss much,” he said. Share 294 Comments NewsletterWednesdays The Color of Money Advice on how to save, spend and talk about your money for the short and long term from Michelle Singletary. Sign up Subscribe to comment and get the full experience. Choose your plan → Advertisement Advertisement TOP STORIES Politics Reporting and analysis from the Hill and the White House Analysis|Fact-checking Trump on Day 4 of the 2024 Republican National Convention Opinion|Trump uniting the country? That’s so last week. 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