Costco’s Price Hike Just Goes Into Effect. Here’s How Much Its Membership Fee Has Increased Since the ’80s

By Weston Blasi

Costco membership fees have increased to $65 per year for the Gold Star plan and $130 for the Executive plan

Costco Wholesale Corp.’s (COST) membership expansion went into effect Sunday, as the annual membership fee increased from $60 to $65 for the Gold Star plan and from $120 to $130 for the Executive plan.

While Wall Street analysts have long pressed Costco to raise its membership fees, the latest hike marks the first time the company has raised its price in seven years. The increase for each plan represents an increase of about 8% over the current price.

Here’s how much the annual cost of a Gold Star membership at Costco has increased over the years.

Before that increase, the company had raised the price of a Gold Star membership seven times since its first store opened in 1983, each time by $5. As you can see from the chart, the fee in 1983 was $25; adjusted for inflation, that would be $80 today.

The company said the new prices went into effect on September 1 and covered 52 million members in the U.S. and Canada.

The change involved increasing the maximum annual award for the Executive membership, which offers more benefits than Gold Star, from $1,000 to $1,250.

Costco Executive members include:

A shopping card for your entire household, valid at all stores. Annual 2% reward on Costco purchases. Discounts on select store services, such as pet insurance and home insurance. Additional benefits with select Costco Travel offers.

Costco Gold Star Membership includes:

A shopping card for the entire household, valid in all stores

Last quarter, Costco membership renewal rates were 90% globally and 93% in the U.S. and Canada.

While membership fees have increased, the company’s $1.50 hot dog-and-soda combo is expected to remain the same. Costco Chief Financial Officer Gary Millerchip said on a recent earnings call that the hot dog price was “safe.”

Read more: Is the Stock Exchange Open on Labor Day? Is Costco Closed?

-Weston Blasi

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09-02-24 0920ET