Costco plans to raise the cost of membership fees by $5 starting on September 1, the company said in a press release Thursday. This is the first membership price hike since 2017, but fortunately, the cost of the hot dog and soda combo is staying at just $1.50, the same price it’s been since 1985.
“With this increase, all U.S. and Canada Gold Star, Business and Business add-on members will pay an annual fee of $65,” the company announced Wednesday.
“Also effective September 1, annual fees for Executive Memberships in the U.S. and Canada will increase from $120 to $130 (Primary membership of $65, plus the Executive upgrade of $65), and the maximum annual 2% Reward associated with the Executive Membership will increase from $1,000 to $1,250,” the statement continues.
The new prices will impact about 52 million memberships, with roughly half of those being the Executive memberships, according to Costco. The fee increases are only impacting customers in the U.S. and Canada, which have 609 and 108 warehouses respectively. But Costco also has locations in Mexico, Japan, the UK, South Korea, Australia, and China, among others.
Costco rival Sam’s Club last raised its basic membership fee from $45 to $50 back in 2022, but the company’s recent announcement that it would raise the minimum required for free shipping on Plus memberships has ruffled some feathers, according to USA Today. Plus members pay a $110 annual membership fee but will need to spend at least $50 per order to get the $8 shipping fee waived.
Inflation has been a key issue of discontent for American shoppers since the covid-19 pandemic, with the cost of basic goods soaring. But there have been positive signs in recent months that inflation is getting under control. Overall inflation was 3% last month on a yearly basis, according to the latest figures released on Thursday. That’s down from 3.3% in May and lower than the 3.1% that was expected by economists, according to the New York Times.
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