CFO says Costco membership fees will increase, but when?

(Nexstar) — Costco isn’t raising membership fees right now, but company officials indicate that change could happen soon. The question is, when?

during Contact the investors Last week, Chief Financial Officer Richard Gallante reiterated that Gold Star membership price hikes would happen, but said “it’s a matter of when, not if.”

Costco last raised its basic membership fee in June 2017. Historically, the retailer has raised the annual Gold Star price every five years, with the previous three occurring for five years and seven months.

Galanti admitted that had the latest price increase followed the same pattern, Gold Star members would have already seen a price increase.

He was done Hint since early last year That higher membership prices will happen “at some point”. In December, Galante said there was “no rush” to raise membership fees amid inflation and fears of a recession.

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“If we have to wait a few months or several months, that’s fine,” he said at the time. CEO Craig Jelinek made a similar statement during a meeting in January, according to from the insideNow is not the time to do that, he calls out.

Earnings data released Thursday showed that Costco membership remains elevated. Over 1 million new members joined in the previous quarter, and membership renewal remains over 90% in the US and Canada.

According to Galanti, executive memberships make up 45% of the company’s current shoppers. These members make up approximately 73% of sales. Currently, Costco Gold Star Membership is $60 The executive membership is $120.

Last year, competitor Sam’s Club raised its membership fee. For now, it’s unclear when Costco will raise its membership fee. When asked, Gallante said, “We’ll tell you.”