Costco to raise annual membership fee for first time since 2017

Costco announced on Wednesday that it would be raising the price for its yearly membership, as prospective and returning members will face a charge of $65 instead of the $60 it’s been for seven years.

The retailer announced that its 8.3% price hike would take effect on Sept. 1 and that its premium membership would also increase to $130 from $120.

Among other changes being made, Costco said the maximum annual 2% reward for its executive membership will rise to $1,250 from $1,000.

Costco, which is known for low prices and bulk items, as well as its never-changing $1.50 hot dog combo, typically increases the cost of membership every five years or so.

However, company executives were believed to have delayed this increase to help customers who were fighting the effects of inflation.

Now, the increase in its membership price will affect nearly 52 million Costco memberships.

In 2022, Costco’s rival, Sam’s Club, boosted its basic annual fee to $50 and its premium to $110, marking the first price hike in nine years.

The move from Costco comes as it continues to tighten its belt on membership sharing and even access to its food court.

The company operates 882 warehouses, 609 of which are in the United States and Puerto Rico.