American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Costco hikes membership fee for the first time since 2017

by admin July 12, 2024
July 12, 2024
Costco hikes membership fee for the first time since 2017

You’ll soon have to pay more if you want to shop at Costco.

The membership-based warehouse club said Wednesday that it will increase its membership fee by $5 in the U.S. and Canada as of Sept. 1. That’s an increase to $65 from $60 for annual memberships. Its higher-tier plan, called “Executive Membership,” will increase to $130 a year from $120.

Costco said the fee increases would affect around 52 million memberships, a little over half of which are executive memberships.

Shares rose about 2% in extended trading Wednesday.

It marks Costco’s first membership rate increase since June 2017. On average, the company has raised rates roughly every five and a half years — which would have put Costco on track to raise the fee in late 2022 or early 2023.

However, Costco held off on raising fees prior to now. In interviews with CNBC, CEO Craig Jelinek previously said it wasn’t the right time as consumers dealt with high inflation. The company’s CFO Richard Galanti made similar comments on prior earnings calls.

Costco relies on membership fees to drive most of its revenue and help keep merchandise prices low. Its rival, Walmart-owned Sam’s Club, hiked its own membership fee in 2022 for the first time in nine years. Yet even after the fee bump, a Sam’s Club membership was cheaper — at $50 for club members and $110 for members of its higher-tier level, “Plus,” on an annual basis. At BJ’s Wholesale, annual membership fees are $55 and $110, for club members and its own higher tier, respectively.

Costco said it stepped up enforcement last year to make sure shoppers weren’t using other members’ cards. It added an extra check for memberships in self-checkout aisles. The moves were reminiscent of Netflix, which has also cracked down on people who use its service without paying.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Tesla is the new meme stock, according to one billionaire investor
next post
The Fed may soon cut interest rates. That could make your next trip abroad more expensive.

Related Posts

Fatburger parent company, chairman charged in alleged fraud...

May 14, 2024

U.S. autoworkers union seeks tough victory at Mercedes...

May 15, 2024

What awaits Musk at Tesla, SpaceX, and xAI...

May 30, 2025

PepeX vs Dogecoin: Why PepeX is a better...

April 19, 2025

JPMorgan, Citi forecast European stocks to outperform US...

May 20, 2025

Airbus stock price analysis: big beneficiary of Trump’s...

April 15, 2025

How investors can prepare for lower interest rates:...

August 25, 2024

Is Pinterest stock a good buy as the...

June 22, 2025

RYLD yields 12%, IWM 1.1%: which is the...

October 20, 2024

ProShares TQQQ ETF is about to explode higher...

November 21, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • India-UK sign historic free trade deal: here’s all you need to know

      July 24, 2025
    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025
    • Trump sues Murdoch and News Corp over Wall Street Journal’s Epstein report

      July 20, 2025
    • The new global demographic challenge: not too many, but too few

      July 20, 2025

    Categories

    • Business (3,474)
    • Investing (2,655)
    • Latest News (2,022)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved