Costco has raised its membership fees for the first time since 2017, marking a significant change for its loyal customer base. As of September 1, 2024, the retailer has increased annual membership fees by $5 to $65 in the US and Canada for its “Gold Star,” “Business,” and “Business Add-On” plans. The premium “Executive Membership” fee has also risen by $10 to $130 per year, though this plan will now offer a higher rewards ceiling, allowing members to earn up to $1,250 annually compared to the previous $1,000.
This price adjustment affects an estimated 52 million memberships, with more than half being Executive members. Membership fees have been a major revenue source for Costco, contributing significantly to its ability to offer low prices. In the past year, membership fees generated $4.6 billion in revenue, marking an 8% increase from 2022.
In addition to the fee increase, Costco is also cracking down on unauthorized use of memberships. The company is implementing stricter entry policies, including the use of membership scanning devices at store entrances. Starting soon, members will need to scan their physical or digital membership cards to gain access. Those with cards lacking a photo will need to present a valid photo ID or visit the membership counter to have their photo taken.
Furthermore, Costco’s new policy requires that all guests be accompanied by a valid cardholder, aiming to prevent non-members from entering stores using others’ membership cards. These measures reflect Costco’s efforts to reduce unauthorized membership use and ensure that only paying members benefit from its services.
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