Costco raised its annual membership fees by $5 for non-executives and by $10 for executives in the United States and Canada. That sets the new rates at $65 per year for non-executives and $130 per year for executives.
The change was effective September 1 and impacts around 52 million memberships, Costco said in a statement. Costco has traditionally raised its membership prices by $5 to $10 every five-and-a-half years, so the latest increase should not come as a shock to members since the last increase was in June 2017.
Additionally, management has been clear about its plans to raise membership fees. On its conference calls in December 2023 and March of this year, Costco’s chief financial officer said the fee increase was a matter of “when, not if.”
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The new Costco fee for non-executive memberships in the U.S. and Canada will be $65, up from $60. Executive membership fees will be $130, up from $120, which consists of the $65 primary membership fee plus the $65 Executive upgrade.
In addition, the maximum annual 2% reward associated with Executive memberships will increase to $1,250 from $1,000.
For comparison of Costco vs Sam's Club, Sam's Club membership is $50. But if you know the secrets to shopping at Costco, you can find ways to make up that $15 annual difference.
Costco stock reacts to the announcement
Costco (COST) stock is up nearly 36% year-to-date and analysts are bullish on the stock going forward. According to NASDAQ, the consensus recommendation among analysts it tracks is a Strong Buy, based on 30 analysts.
Analysts’ price targets have moved up with COST’s run higher. Shares are up nearly 36% in 2024 and over 69% in the last year. Currently, the average price target is $924.55, representing implied upside of just over 4% to current levels.
Financial service firm Oppenheimer is one of the more bullish outfits on COST stock with a Buy rating and a price target of $925. The price target was initially higher at $950 in July, before being lowered to 925.
Oppenheimer continues to "see improvements in the quality of Costco's treasure hunt from stronger brands in apparel/consumer durable offerings to a more powerful assortment of discounted gift cards in store," analyst Rupesh Parikh said in an August 27 note, as per Yahoo. "Against a mixed discretionary backdrop lately, we believe this has contributed to a meaningful improvement in non-foods category trends and the company's standout performance."
Oppenheimer’s $925 price target implies upside of about 3% to current levels.
Related Content
-
Costco Gold Bars Keep Selling Out. Are They a Smart Investment?How Costco's bullion program works, how to get the best deal and whether it makes sense for investors.
-
Medigap vs Medicare Open Enrollment: What's the Difference?Nearly 10,000 people in America turn 65 every day. Why is that significant? It signals Medicare eligibility and shines a light on Medicare supplement insurance, known as Medigap.
-
Costco Gold Bars Keep Selling Out. Are They a Smart Investment?
How Costco's bullion program works, how to get the best deal and whether it makes sense for investors.
-
Medigap vs. Medicare Open Enrollment: What's the Difference?
Nearly 10,000 people in America turn 65 every day. Why is that significant? It signals Medicare eligibility and shines a light on Medicare supplement insurance, known as Medigap.
-
A Financial Planner's Guide to a Stress-Free Adventure AbroadStart by looking at flight/accommodation costs, have a flexible schedule, seek out credit card rewards, prep for health issues and plan to cook your own food.
-
I'm a Financial Planner: This Is How Smart Women Can Plan for Financial Freedom Despite Life's CurveballsProactive planning and professional guidance can help to build your confidence and give you clarity when you're navigating major life transitions.
-
I Inherited $50,000, and My Retirement is Fully Funded. Where's the Best Place to Store It for Maximum Growth?These savings solutions can help you maximize returns without the risk.
-
The Best (and Worst) Airlines for Flight Delays and CancellationsWhich airlines should you book and which should you avoid if you want to make it to your destination on time?
-
How to Choose the Best Charities to Donate ToWhile you set your giving strategy, think about your values, and select organizations that will put your contributions to good use.
-
I'm a Financial Planner: This Is Why Commitment, Not Perfection, Drives Financial SuccessMeeting your goals is more likely if you stick to your strategy despite market volatility and scary headlines. Consistency makes a difference.
