Costco members may need to get ready for their membership fees to go up following the company's quarterly earnings report this week. When it will happen is still unclear, according to multiple reports. But based on previous fee hikes, members could see it in the next few months.
"I think the question will continue to be asked until we do or don't do something, but at the end of the day, we certainly feel very good about our member loyalty," Costco CFO Richard Galanti told analysts, according to USA TODAY. "At some point, it'll happen. But stay tuned."
Yahoo reports the last three membership fee hikes came in 2006, 2011 and 2017 -- anywhere from five to six years apart.
Costco has two membership levels. Gold Star costs $60 per year. Executive is $120 per year and offers more reward features and additional discounts.
Galanti reportedly said that Costco's membership renewal rate for the U.S. and Canada was 92%. It's been boosted by members choosing an autorenewal option.
Costco said its second quarter sales were up 14.4% and net income was up $1.3 billion compared to $951 million for the same period in 2021.
Amazon announced last month it was increasing its Prime membership for the second time in four years. The rate for annual subscribers will go from $119 to $139 starting March 25. The announcement came at the same time Amazon reported that its fourth quarter profits had nearly doubled from the previous year.
