- Costco Wholesale (NDAQ:COST) is gearing up to increase its membership fees for the first time in seven years
- Annual membership fees are expected to increase in the U.S. and Canada effective Sept. 1
- Costco currently operates 882 warehouses, including 609 in the United States and 108 in Canada
- Shares of Costco Wholesale are down 3.17 per cent to US$856.32 as of 12:15 pm ET
Costco Wholesale (NASDAQ:COST) is gearing up to increase its membership fees for the first time in seven years.
The company stated in its June sales results that annual membership fees are expected to increase in Canada and the United States effective Sept. 1.
Annual membership fees in the U.S. and Canada Gold Star, Business and Business add-on members will increase by $5 to an annual fee of $65.
Meanwhile, membership fees for executive members in the U.S. and Canada will increase from $120 to $130, also effective Sept. 1. The maximum annual 2 per cent reward associated with executive memberships will increase from $1,000 to $1,250.
In total, the fee increases will impact roughly 52 million memberships with more than half of those accounting for executive memberships.
Costco memberships offer a wide range of benefits for its customers, including free samples, food discounts gas, home insurance, travel and grocery items.
Costco currently operates 882 warehouses, including 609 in the U.S. and 108 in Canada. The remaining locations include 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven in China, four in Spain, two in France, and one in Iceland, New Zealand and Sweden, respectively.
Costco Wholesale provides a wide selection of merchandise, convenience of specialty departments and exclusive member services. It operates through three segments: U.S. Operations, Canadian Operations and Other International Operations.
Shares of Costco Wholesale Corp. (NDAQ:COST) are down 3.17 per cent to US$856.32 as of 12:15 pm ET.
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(Top image of a Costco Wholesale membership card: Adobe Stock)