Costco Isn't Increasing The Membership Fee For Now, But It Will "At Some Point"

Costco Isn't Increasing The Membership Fee For Now, But It Will "At Some Point"
Cover Image Source: Getty Images | Scott Olson

Costco isn't planning to hike its membership fee this summer, its top executive recently said. However, as inflation remains high, prices may see a change in the future, as per The Sun.

Costco CFO Richard Galanti asked the stakeholders to rest easy during an earnings call last Thursday and said that even if they raise prices, the overall membership number is expected to stay intact.

Also Read: Customers Divided As Costco Implements Strict Membership Policy for Food Court Access

"With the headline being inflation, we feel very good about if we want to do it, we do it without impacting in any meaningful way renewal rates or sign-ups or anything," Galanti said. 

Getty Images | Justin Sullivan
Getty Images | Justin Sullivan

Talks around Costco's price jump have been around for a while now. However, the company says that it has successfully been able to keep the membership cost surge at bay. Galanti made it clear that the price hike is only a matter of time, saying it’s a question of "when, not if."

As the majority of retailers increase their prices because of inflation, Costco is still holding on to the price increase. "Our view right now is that we’ve got enough levers out there to drive business and we feel that it’s incumbent upon us to be that beacon of light to our members in terms of holding them for right now," Galanti said. 

Also Read: Costco's Return Policy Goes Viral Following Video About Customer Returning 22-Year-Old TV

Costco performed well through the Covid-19 pandemic and has been tackling inflation in an efficient manner. The company reported a 2% hike in their net sales for this quarter that ended May 7, The US Sun reported.

It was also reported that the membership revenue and the same-store sales also grew substantially during this period. Over one million new members joined the membership universe in the quarter taking the total count to 69 million customers across the globe. Costco bagged over a billion dollars in membership alone during the past quarter.

Also Read: ‘Shark Tank’ Shark Barbara Corcoran’s First Costco Visit Garners Humorous Reactions From Fans

So When Is The Costco Membership Fee Increasing?

Getty Images | Mario Tama
Getty Images | Mario Tama

Galanti said, "And at some point, we will," meaning that the rise is inevitable. However, the good news for the shoppers is the timing. According to Eat This, Not That, the company raises its annual fees every five to six years. "They average around 5 years and seven months," Galati said. The last increase came in 2017, so if the pattern were to continue then the next increase is already due.

Is Costco Membership Really Worth It?

Getty Images | Joe Raedle
Getty Images | Joe Raedle

Before analyzing if the membership is really worth your money let's look at the different tiers of the membership. A Gold Star membership at Costco will cost you $60 annually and the executive tier will come for around $120 a year. Now, there are some folks that will benefit beyond the membership cost, like a restaurant owner or a large family of four or more.

If you are somebody who throws a lot of parties, somebody who buys more than a couple of appliances per year. So, if you don't fall under any of these categories then it's safe to say that you might want to rethink your choices. Having said that, the executive membership does have a lot to offer The perks are,

1. Access to Costco's Travel Services

2. Discounted Business Services

3. Home and Life Insurance

4. Appliance Delivery and Free Installation

5. Lower prices on Car Buying

6. Lower prices on Check Printing

On top of these, an executive membership also has an annual 2% rewards program, which many people like as they get a bonus for most of the purchases they have made throughout the year, as per Hungry Huy

In Conclusion

Getty Images | Justin Sullivan
Getty Images | Justin Sullivan

If you are relying on Costco for just your grocery needs then the saving isn't as competitive. However, Costco has a lot to offer and there's absolutely no denying that, from their in-house Kirkland brand to their authentic food items there are a few reasons why shopping at Costco is a fair deal.

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