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Costco is planning to start charging more to enter the retail establishment soon, making this the first price hike in seven years.

Increased Membership Fees

On Wednesday, July 10, Costco announced a $5-$10 hike to its membership price for United States and Canada residents starting September 1. This shift will increase the yearly membership fee from $60 to $65, while its most expensive plan, "Executive Membership," will increase from $120 to $130.

The yearly reward cap for those with Executive Membership will be increased to $1,250 from $1,000.

According to Costco, this change would affect approximately 52 million memberships, with slightly more than half of them being Executive members.

First Time Since 2017

This is the first time Costco has raised membership fees since June 2017. According to a CNBC report, the business was expected to increase the cost in late 2022 or early 2023, in line with the company's normal rate hikes every five and a half years. But up until this point, Costco has refrained from increasing prices.

CEO Craig Jelinek told CNBC in the past that customers were dealing with significant inflation, thus the delay. Chief Financial Officer Richard Galanti said the same thing on previous earnings calls.

Costco has kept prices low by collecting annual fees, which have been a major source of profit for the company. According to CNN, membership fees brought in $4.6 billion for Costco last year, up 8% from the previous year.