Costco Members Face Higher Annual Fees as Price Hike Takes Effect

Costco Gold Star members in the U.S. and Canada now have to pay $65 per year instead of $60. While the maximum annual 2% reward for Costco’s executive memberships jumped to $1,250 versus $1,000 previously, the annual fee increased by $10, up to $130. The price increase is in effect now, and roughly 52 million members will be impacted, with over half being executive members.

Costco first announced the membership price hike in July. It is the first increase in annual membership fees since 2017. According to Costco, the small rise in membership fees helps the retailer provide more value to members.

“It has been more than seven years since Costco’s last general membership fee increase,” noted Costco, per USA Today. “Membership fees help to offset costs so we can keep our prices low.”

When Costco previously raised annual fees, Gold Star memberships in the U.S. and Canada went from $55 to $60, while executive memberships went from $110 to $120.

Costco’s rival Sam’s Club charges $50 for a standard membership and $110 for the Plus membership. It last raised annual fees in 2022.

With approximately 884 locations worldwide, Costco creates customer loyalty through membership fees. After paying to become a member, customers are more likely to shop at the warehouse instead of competitors. Currently, Costco is the third largest retailer in the U.S., behind Walmart and Amazon.

Annual fees also provide a steady revenue stream for the Washington-based company. Revenue from membership fees was $4.6 billion in 2023, up 8% from the previous year. The predictable inflow of annual fees helps Costco keep prices low, which attracts and retains customers.

In addition to raising annual fees, Costco is also making it more difficult to share a membership among friends and family. When shoppers enter a store, they must scan their membership card, and any non-member must be accompanied by someone with a membership. An additional free card is still available to a designated individual living in the same household.