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.”
Sign up for Kiplinger’s Free E-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
-
Is Your Social Security Earnings Record Wrong? Here's How to Fix ItYour Social Security benefits are based on your Social Security earnings record. It's important to review your records to avoid having your benefits reduced.
-
Stock Market Today: Markets Discount Another U.S. DowngradeAfter Friday's closing bell, Moody's followed Standard & Poor's and Fitch and cut its rating on U.S. government debt.
-
Eight Ways To Save on Your Next Luxury TripLooking for ways to stretch your retirement dollars? Follow these tips to get a deal on your next vacation.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
How to Budget for College Expenses Beyond TuitionSome universities waive tuition for families with incomes below a certain threshold. But you'll still need a plan to cover other costs.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Delta’s New Fare Changes Just Made Booking Flights and Earning Miles More ComplicatedHere’s what travelers need to know about Delta’s fare changes before booking their next flight.
-
United Airlines Raises the Bar with New Business Class SuitesDiscover how United's new Polaris Studio suites redefine luxury and comfort on long-haul flights.
-
Walmart Raising Prices Soon — Here’s Which Products Will Cost You More This SummerIf you heard about Walmart raising prices, here are the key details you need to know ahead of your next shopping trip.
-
I'm an Insurance Pro: How Not to Get Dumped by Your Insurance AgentYour insurance agent or broker might show you the door if you do any of these five things. Being a good customer is about more than paying your bill on time.
