COSTCO buyers may face higher membership fees this year.
The warehouse chain confirmed yesterday that a possible increase is imminent but has not yet been confirmed.
The company has not increased its membership fees since June 2017.
Richard Galanti, the wholesale club’s finance officer, said an increase will be made but when and how much is still up in the air.
Previous increases have occurred every five and a half years.
“I think the question will continue to be asked until we do or don’t do something, but at the end of the day we’re very comfortable with our member loyalty,” Mr Galanti said during a call with analysts to discuss the retailer’s quarterly earnings.
He added: “Eventually it will happen. But stay tuned.”
Many companies have already adjusted product and membership prices this year to reflect the sharp rise in inflation.
In January, the inflation rate reached 7.5% compared to the previous year.
Whichever path Costco chooses, Mr. Galanti believes in the loyalty of the club’s customers.
He said United States today that the renewal rate for clubs in the United States and Canada is approximately 92% and recently an increasing number of members have opted for automatic renewal.
If Costco decides to increase its membership, Guggenheim analyst John Heinbockel believes it will happen in about eight to nine months.
What memberships does Costco offer?
Costco currently has two types of memberships – the Gold Star membership and the Executive membership.
Gold Star Membership is $60 per year, includes two cards per household, and gives you access to all clubs worldwide and to Costco online.
Executive membership costs $120, and the main difference is that you can get 2% back on all qualifying purchases and save on vacations booked through Costco Travel.
In addition to cheap membership fees, Costco also has a generous return policy.
The company has a 30-day price match policy and a 100% risk-free membership guarantee.
Therefore, you can try a membership and if you are not satisfied with it, you can get a full refund.
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https://www.the-sun.com/money/4824096/costco-membership-fee-increase/ Costco membership dues may increase this year for the first time since 2017