Costco Raises Annual Membership Fees for the First Time Since 2017

ISSAQUAH, Wash. (AP) — Costco bargain hunters are going to have to pay an additional $5 to $10 annually as the popular warehouse chain prepares to raise its membership fees for the first time in seven years. The Issaquah, Washington, company disclosed the forthcoming 8% increase in the fee to gain entry into its more than 700 warehouses in the U.S. and Canada as part of a monthly sales report Wednesday. The new fees, set to take effect Sept. 1, will boost the price of Costco's basic Gold Star membership from $60 to $65 annually, while the cost for the premium Executive membership will rise from $120 to $130. The annual fee had remained the same since 2017 , despite several years of unusually high inflation rates that finally have been cooling down in recent months. With inflationary pressures squeezing household budgets, Costco's commitment to offering low prices on a wide range of food and other merchandise has helped make its warehouse an even more popular shopping destination. That phenomenon, in turn, has help boost its profits, making its stock a hot commodity among investors. Costco's shares have nearly doubled during the last 18 months, increasing the company's market value by about $180 billion during that span. Costco's shares rose by more than 2% after news of the fee increase and its latest sales gains came out. If the stock behaves similarly in Thursday's regular trading session, the shares will hit a new peak. Besides the fee increase, Costco disclosed its sales for the five-week period ending July 7 rose by 7% from the same time last year to $24.48 billion. Costco bargain hunters are going to have to pay an additional $5 to $10 annually as the warehouse chain prepares to raise its membership fees.