Your Costco membership fee will soon be on the rise, the company’s chief financial officer said last week.
Costco CFO Richard Galanti confirmed on a recent earnings call the price increase will happen soon, but did not specify when. He noted the company typically raises its membership fees, on average, every five years and seven months. The last increase came in June 2017.
Galanti didn’t disclose how much the increase would be, saying he would “be purposely coy” about it. But he did say “it’s a question of when, not if.”
“We feel that we’re in a very strong, competitive position right now, and if we have to wait a few months or several months, that’s fine,” Galanti said. “At this juncture, we’ll just have to wait and see.”
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Galanti has been open about a soon-to-be price increase ever since he brought up the idea in March. He said the company feels very good about its membership renewal rates as it is at 92.5% in the US and Canada.
Costco has two membership tiers: gold star, which cost $60 a year, and executive, which cost $120 a year. Before the 2017 price increase, the gold star membership was $55 and the executive was $110.
The announcement of the soon-to-be membership price increase comes months after Costco’s competitor, Sam’s Club, announced in September it was raising its membership prices. The Walmart-owned retailer raised its Club members prices from $45 to $50 and $100 to $110 for its Plus members.
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