- Costco announced on Wednesday that it is increasing its annual membership fees.
- This is the first time Costco has increased its fees since 2017.
- The retailer has hinted for months that wage increases were on the way.
Costco membership fees are getting expensive.
The wholesale club retailer announced while announcing its June sales results that annual membership fees for Gold Star and Business members will be set at $65 starting Sept. 1. Currently, membership fees are $60.
Meanwhile, the cost of an executive membership will increase from the current $120 to $130.
One of the perks of Executive Membership is a 2% cash back on members’ annual spending. The maximum cash back a member can earn will increase from the current $1,000 to $1,250.
This rate applies to Costco members in the United States and Canada. Membership fees are the same regardless of currency. For example, a Canadian Gold Star Membership costs $60 CAD.
This is the first time Costco has increased membership fees since 2017.
Costco Chief Financial Officer Gary Millerchip said in May that a fee increase was coming eventually, adding, “It’s not a question of if we’re going to increase our fees, it’s a question of when.” Millerchip did not give a specific date for the increase at the time.
At the time, Costco said it had about 134 million members and boasted a renewal rate of more than 90%.
The raise comes after Costco’s CEO said in a memo obtained by Business Insider that the company would raise pay for hourly employees.
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