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Woman's World
Costco Is Raising Its Membership Fees: Learn About the Increase and Customer Feedback to the News
By Shay Trotter,
2024-07-17
Big-box warehouse store Costco, which opened its first location in 1983, is a popular spot thanks to its high-quality household and grocery items offered at an affordable price. But regular shoppers will soon have to shell out more for their memberships if they want to keep taking advantage of the store’s great deals. Below you’ll find more information on Costco raising membership fees and how the news has been received by customers.
How much is Costco raising membership fees?
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The warehouse chain shared membership fees would change for customers in the U.S. and in Canada. Starting September 1, annual members will see a $5 increase, taking the rate from $60 to $65.
Those who are a part of the higher-tier plan will see an even larger increase. The “Executive Membership” will increase from $120 annually to $130 when the changes take effect in two months.
Costco shares that these fee increases will impact about 52 million memberships, CNBC reports. A little over half of those customers are those who have the more expensive executive memberships.
Those with an executive membership will see one perk in September, however. The company mentions on their website that there will be an increase in the cash back cap on the Executive Membership, which will now be $1,250 per year instead of $1,000. In this program, members earn an annual 2% Reward on qualifying purchases when they shop in store, online or through Costco Travel.
Why is there a Costco membership increase?
Loyal Costco customers may be wondering why they’ll be paying more to be able to shop at the store. The company says the modest fee increase, the latest since 2017, is to ensure they can bring members greater value.
Memberships, which are required to shop at the store, are part of their policy to give customers a great deal. The fees they collect help them offset operating costs so merchandise can be priced lower.
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How customers have responded to the Costco membership cost increase
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A company asking customers for more money is often not well-received (especially in a time when many are feeling the effects of inflation), but the fee hike doesn’t seem to be bothering the majority of Costco guests. In fact, some feel it’s quite reasonable given the deals they get!
On one video reporting on the change, TikTok user @sylviaaaxoxo commented, “I mean, it’s only $10 and so worth it!” Video creator @moni_amezcua agreed, adding, “’Specially since the last increase was 7 years ago!”
Other customers on the video below shared their thoughts on the news. Many suggested they were happy to continue their membership, with some saying the increase is nothing to be concerned about with today’s high merchandise prices.
Costco isn’t the only membership-based warehouse chain to raise its fees in recent years. Rival Sam’s Club (owned by Walmart) increased its membership fee in 2022 for the first time in nine years. However, the company’s membership still remains cheaper than Costco. Right now, club members pay $50 and “Plus” members (a higher tier) pay $110 in annual fees.
Like Costco’s “Executive Membership,” Sam’s Club “Plus” members can enjoy a reward system where they earn 2% back on qualifying purchases. One difference, however, is the cap is set at $500, compared to Costco’s $1,250.
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Another competitor, BJ’s Wholesale , offers memberships at a similar price level. Their Club Card Membership is currently offered at a $55 annual fee. Their Club+ Card Membership is the same as Sam’s Club at $110 and also offers 2% cash back.
Looking to cut down on costs? You can still do some shopping at warehouse clubs without a membership. Find out the secret , plus more tips for saving when you shop at popular retailers.
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