US retail giant Costco will soon announce new membership prices for the current 2024 year. Over the previous two years, the stakes for people wanting to become part of the company had been high. Until now, the company has not yet confirmed what the official prices for these purposes will be this year. However, it is believed that they may remain identical to those shown over the past five years. Obviously, the high renewal rates of loyal customers, as well as new registrations, had an impact at this stage.
Competition is hiding
One of its competitors, Sam’s Club, has already announced that it will increase its membership prices this year. However, Costco does not feel pressure on its shoulders due to the increased quota. This was announced by its chief financial officer Richard Galanti. “We didn’t have to do that. “We feel pretty good about what we’re doing right now.”
As Costco’s history has shown, the company typically raises membership prices every five or six years. In fact, the last time this happened was in June 2017, meaning the above rates will likely have to be modified this year.
Michael Lasser, an expert analyst on the issues, said increasing Costco’s membership fees is an action that shouldn’t take long. He predicts it will be “introduced to customers by next summer.”
Meanwhile, Arun Sundaram, equity analyst at CFRA, commented to USA Today on the issue at hand. “I see the necessary ingredients to increase membership premiums in Costco’s 2023 quarterly results.”
There’s no denying that a significant source of Costco’s revenue comes from paying customers for memberships. During the first quarter of 2023, approximately $1,080 million was received.
Costco currently has two memberships: Costco Gold Star ($60/year) and Executive ($120).