Costco's exclusive private membership policy is integral to its business model. Paying $60-120 a year for a membership isn't chump change, at least not for the average grocery shopper, but it's because of that exclusivity that Costco can offer its shoppers such incredible deals, which reflexively makes the annual membership cost well worth its while.
But times are a'changing, and with them, so are Costco's memberships. On July 10, Costco slipped in a big membership update beneath their June sales report, and it's going into effect sooner than you'd think- much to the chagrin of Costco shoppers.
"[Costco] also announced that, effective September 1, 2024, it will increase annual membership fees by $5 for US and Canada Gold Star (individual), Business, and Business add-on members," read Costco's latest investor report . In short, the basic Costco membership cost will jump from $60 a year to $65, starting this September.
It's even worse for Executive Membership holders (who, according to Costco, make up more than half of the roughly 52 million members impacted by these fee increases). Also effective September 1, Executive Membership fees in US and Canada will jump from $120 to $130. Their maximum annual 2% reward cap will increase from $1,000 to $1,250, though, so there's at least that silver lining. Still, I've been meaning to downgrade to a basic Gold Star membership anyway, and this is a pretty good reminder to stop putting that off...
Costco's "Overdue" Price Hike
This is the first time that Costco has hiked up its membership prices since June 2017, over seven years ago. According to CNBC , Costco historically raised its membership rates about every 5.5 years, meaning that this price hike would have been due more than a year prior. But in 2022, then-CEO Craig Jelinek told CNBC that it " wasn't the right time " for a price hike, citing strong sign-ups and good revenue despite the high inflation. Still, I guess all good runs must come to an end someday, and Costco savings come at a price.
Incidentally, Jelinek was the man that Costco founder Jim Sinegal famously once threatened with murder if he dared to "raise [the price of] the effing hot dog " back in 2018. After Ron Vachris took over the role of CEO from Jelinek in January 2024, some shoppers feared that the food court hot dog's famous $1.50 price was once again in jeopardy. However, in May, Costco's CFO, Gary Millerchip, reassured the public that " the $1.50 hot dog price is safe ," reported USA Today . Even with the membership hikes, the cost of the hot dog still appears to be set in stone... for now. If that price ever finally creeps up, then we're in real trouble!
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