Costco Reveals When Customers Can Expect A Membership Price Increase
October 3, 2022 by Marissa Matozzo
If you’re a frequent Costco shopper and member, we’re happy to relay the following news— the wholesale giant will be *putting off* a potential membership fee increase. This, Fox News reports, is due to the company’s renewal rates hitting “all-time highs in its fourth quarter.” During Costco’s earnings call last week, the company (which usually increases its membership fee ever 5 years), revealed that customers will not have to prepare for a higher fee in the near future.
“In terms of membership fees and a possible increase, there are no specific plans regarding a fee increase at this time,” Costco Chief Financial Officer Richard Galanti said during the call. “We’re pleased with our growth in both top line sales and membership households over the last several quarters and in member loyalty as reflected in increasing member renewal rates.”
At the end of the fourth quarter, Costco’s membership renewal rate came in at “92.6% in the U.S. and Canada, and 90.4% worldwide, up from 92.3% and 90% in the previous quarter, respectively,” Fox News writes, and Costco has 65.8 million “paid household members and 118.9 million cardholders as of the end of the fourth quarter,” both up 6.5% compared to a year ago. Paid executive memberships totaled “29.1 million, an increase of 1.2 million compared to the third quarter.” In addition, executive members now “represent over 44% of Costco’s members and just under 72% of its worldwide sales.”