Costco membership fees increase Sunday: What to know
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Costco Wholesale Club membership prices increase Sept. 1, 2024. Photo: Angus Mordant/Bloomberg via Getty Images
The cost of a Costco membership increases for the first time in seven years starting Sunday.
Why it matters: The increase comes as the wholesale club's membership card sharing crackdown goes nationwide with scanners being added to club entrances.
- Costco previously held membership fees steady despite ongoing inflation as it aimed to maintain its reputation for value.
Costco membership price increase 2024
The big picture: The rate increases begin Sept. 1 in the U.S. and Canada and range from $5 to $10 depending on membership level.
- The increases impact about 52 million memberships "a little over half of which are Executive," Costco said in a July news release,
- The new fee structure applies to new members signing up and starts with September 2024 renewals as well as memberships auto-renewed effective Sept. 1, Costco said on its website.
Gold Star and business membership fees increase from $60 to $65.
- Executive membership fees are double the basic membership's price but members earn a 2% reward on eligible purchases. This rate increases $10 from $120 to $130.
Yes, but: The fee increase is "relatively small compared to the overall savings customers typically enjoy on bulk purchases," Sujeet Naik, a senior research associate with Coresight Research, told Axios.
- Naik said he doesn't expect Costco to see substantial attrition because of the hikes "as most customers are likely to see the value in paying a few extra dollars for a year's worth of bargains."
Costco Executive membership benefits
State of play: The Executive membership price hike comes with a bonus for members who spend a lot at Costco.
- The 2% reward maximum increases from $1,000 to $1,250 with the new rates.
Zoom in: Costco has a table on its website to estimate approximate annual rewards.
- An Executive member spending $250 a month or $3,000 a year earns a $60 annual reward.
- A member with $500 monthly purchases and $6,000 yearly purchases on eligible purchases earns a $120 reward.
- Executive members earn 2% back on trips booked with Costco Travel and can earn more with the Costco Citi Visa. (Use Costco's travel rewards calculator to estimate earnings.)
Sam's Club membership cost 2024
Competitor Sam's Club last raised its membership fees in October 2022 after nine years of keeping its rates steady.
- The 2022 hikes are identical to Costco's new increases and range from $5 to $10 depending on membership level.
The basic Club membership costs $50 and the Plus membership costs $110.
- A Plus membership, which includes extended shopping hours and 2% back, costs $110. The 2% reward is up to $500.
Costco closed Labor Day 2024
Between the lines: Costco clubs are closed Monday for Labor Day, the day after the price increase goes into effect.
- Costco closes for many federal and major holidays including New Year's Day, Easter, Memorial Day, Thanksgiving and Christmas.
Editor's note: This story was updated with a photo of Costco's new membership prices that began Sept. 1.
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