Costco Is Increasing Membership Fees For The First Time Since 2017. Here's What To Expect
Most Costco members turn to the warehouse chain for bulk shopping because it's typically far more cost efficient for many foods and household products compared to local shops and other grocery chains. Those savings come with a small price, however, because you must pay an annual membership fee that starts at $60 — but that cost is about to rise for the first time in seven years.
The warehouse retailer announced on July 10, 2024, that its base membership, known as the Gold Star plan, and Business membership plan will both increase $5 to a new annual fee of $65 starting on September 1, 2024. While there's no official word on why Costco has chosen to increase its membership prices yet, it might be because those fees are known to be the source of its largest profits. In fact, while it does profit from product sales, some report much of its earnings come from those annual membership fees.
The company's net sales increased by 6.9% so far this year compared to this time in 2023 according to its report, so perhaps it wants to capitalize on that growing popularity. And while $5 a year can certainly add up, where else can you get free samples of unique products like Manuka honey? And Costco's iconic hot dog deal still gets you a quick meal and drink for just $1.50.
Where Costco members can expect the increased membership fee
According to Costco, the fee hike impacts customers in both the United States and Canada, although some of its 882 locations are in other countries like Australia, Japan, and the United Kingdom. However, it's not just Gold Star and Business memberships in the U.S. and Canada that are increasing. Executive Membership fees will increase from $120 to $130 annually. In a bit of good news, the cap on its cash back reward for its Executive Membership customers will max out at $1,250 instead of the current $1,000.
It's true that every dollar counts, especially these days with the rising costs of groceries. However, if you take advantage of the deals, the membership can virtually pay for itself in savings. For guidance, here's how to shop at Costco as a single person for the most savings. And the costs of products like aluminum foil can add up so you might want to know Costco shopper's favorite kitchen staples that can also save you some cash to make up for that increased membership fee.