Costco is increasing its basic membership fee for the first time since 2017, raising the annual charge from $60 to $65.

Membership Fee Hike Details

This 8.3% cost increase will take effect on September 1, as announced by the retailer on Wednesday. Additionally, a premium membership will rise from $120 to $130.

Along with the membership fee hike, Costco also increases the maximum annual 2% reward for its executive membership from $1,000 to $1,250. This pricing adjustment will affect approximately 52 million memberships. Historically, Costco has increased membership fees roughly every five years. However, company executives had previously held off on a fee hike to avoid adding financial pressure on shoppers already dealing with high inflation.

Impact on Members and Competitors

Compared to Costco’s new rates, rival Sam’s Club raised its basic annual fee in 2022 to $50, with its premium membership climbing to $110. This was the first increase for Sam’s Club in nine years. Despite Costco’s membership fee hike, the retailer remains competitive in the market, offering substantial value to its members. The fee increase is expected to bring in additional revenue, which Costco can reinvest into its operations and member benefits. While some members might be concerned about the higher cost, many are likely to continue their memberships due to the overall value and savings they receive from shopping at Costco.

Costco’s Commitment to Value

Despite the membership fee increase, Costco remains committed to providing value to its members. The company’s chief financial officer assured in May that Costco’s iconic $1.50 hot dog combo special, which has been in place since 1985, will not be affected by the price hike. This popular offering has become a symbol of Costco’s dedication to low prices and member satisfaction. Earlier this year, Costco also implemented measures to ensure that only members can access its food court deals, including the discounted hot dog-and-soda combo. This move reinforces the company’s commitment to delivering exclusive benefits to its paying members.

Costco operates 882 warehouses globally, with 609 located in the United States and Puerto Rico. The company continues to expand its footprint while maintaining a strong focus on value and customer loyalty. However, Costco’s decision to raise membership fees reflects a balance between business growth and member value. While the cost of membership will rise, the company’s dedication to providing exceptional value and maintaining beloved traditions like the $1.50 hot dog combo ensures that members will continue to enjoy significant benefits.