Costco Increases Membership Fee; Wholesale Clubs Comparison

Shoppers take note: Costco announced this week it is increasing its membership fees by 1o percent starting Nov. 1, just in time for the holiday season.

Costco, which operates the largest membership warehouse chain in the country, will increase annual membership fees by $5 for its individual and business members to $55 a year. Fees for “executive members” will increase to $110 from $100, the company said on Wednesday during its fourth quarter earnings announcement.

The wholesaler implements a fee increase about every five years or so to keep up with inflation, according to Laura Champine, senior retail analyst with financial services firm Cowen Group. Membership fees account for most Costco’s profits, Champine said.  More

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