Costco has announced that it’s raising its basic membership from $60 to $65 dollars a year, marking the first time since 2017 that the company has bumped up the fee.
“With this increase, all U.S. and Canada Gold Star, Business and Business add-on members will pay an annual fee of $65,” Costco said in the report, adding that the basic membership fee increase will go into effect on Sept. 1, 2024.
Annual fees for executive memberships will go up from $120 to $130, with the same effective date as the lower-tier membership fee hike.
The membership fee increase will affect roughly 52 million memberships.
Historically, Costco has raised its membership fees every five years. Some analysts expressed the expectations in prior quarters that a fee bump could be imminent. Company executives had indicated that an increase was inevitable but wanted to ensure high renewal rates before making their move.
In the report, Costco said it had achieved net sales of $24.48 billion for the month of June, an increase of 7.4 percent from $22.78 billion last year.
Net sales for the first 44 weeks were $210.55 billion, an increase of 6.9 percent from $196.93 billion last year.
Costco also announced a quarterly cash dividend on Costco common stock of $1.16 per share.
The company currently operates 882 warehouses, including 609 in the United States and Puerto Rico.
