Prices on just about everything continue to tick upward for U.S. consumers post-pandemic, from airlines passing on airfare and baggage price hikes to offset fuel costs to restaurants upping the cost of various food items and meals.
Now, beloved big box retailer Costco is making some pricing adjustments as well.
Costco announced in its June sales report on Wednesday that starting Sept. 1, 2024, it will increase annual fees for its bifurcated membership options.
For U.S. and Canada Gold Star, Business, and Business add-on members, there will be a $5 increase, bringing the annual fee up to $65.
How Costco, grocery membership fee hikes impact consumer buying decisionsAnnual fees will also increase for Executive Memberships from $120 to $130 -- the primary membership of $65, plus the Executive upgrade of an additional $65.
These fee increases, according to Costco, will impact around 52 million memberships, a little more than half of which are Executive level.
The maximum annual 2% Reward that Executive Members receive will also increase from $1,000 to $1,250.
Costco operates 882 warehouses, including 609 in the U.S. and Puerto Rico, 108 in Canada, as well as e-commerce sites.
Guggenheim analyst John Heinbockel previously predicted that Costco was close to increasing its annual membership fees back in 2021.
"As is well known, Costco has increased its annual membership fee every five and a half years by $5 to $10," he wrote in a research note at the time, predicting that "the Gold Star fee" would eventually rise "to $65 from $60 while the Executive membership would move to $130 from $120."
