Costco Raises Membership Fees

Costco Wholesale Corp. is raising membership fees by 10 percent for its 22 million members.

Effective Nov. 1, the annual fee for U.S. Goldstar (individual), Business, Business add-on and Canada Business members will jump $5 to $55 a year. Also effective Nov. 1, U.S. and Canada Executive Membership annual fees will increase from $100 to $110, and the maximum 2 percent reward associated with Executive Membership will increase from $500 to $750.

The fee increases affect about 22 million members, roughly half of which are Executive Members. The Costco store in Fountain Valley is at 17900 Newhope St.

Costco blamed the increase on rising costs of food and clothing. 

The Seattle-based company hasn't raised its main membership fees since 2006.

According to a press release issued this week, the company reported its net sales jumped 17 percent to $27.6 billion in the fourth quarter, which included sales from a Mexican joint venture. Comparable sales were up 12 percent system wide; in the U.S. they increased 10 percent, while internationally comparable sales grew 19 percent.

Costco earned $478 million in the fourth quarter, an adjusted $1.08 per share. Although that was a 10.6 percent jump, profits were still below expectations of $1.10 per share by Wall Street’s major analysts, the release states.

Will you pay the new fees or say forget it? Tell us in the comments.