United States retail giant, Costco, will soon announce new membership prices for the current year 2024. During the previous two years the rates were high for those who wanted to be a part of the company. So far, the company has not yet confirmed what the official prices will be for this purpose during the current year. However, it is estimated that they may remain similar to those shown in the last five years. It is clear that strong renewal rates of loyal buyers, as well as new registrations, weigh at this point.
Competition hides
One of the competing companies, Sam’s Club, has already announced an increase in its membership prices for this year. However, Costco is not feeling the pressure on its shoulders to increase its quota. This was said by its financial director Richard Galanti. “We don’t have to do that. “Right now, we feel pretty good about what we’re doing.”
As Costco’s history has shown, the company typically raises its membership prices every five or six years. In fact, the last time it did so was in June 2017, that is, it will be necessary to change the above rates this year.
Michael Lesser, an analyst who specializes in these issues, said Costco’s increase in membership fees is an action that shouldn’t take long. He predicts that “by next summer it will be in front of its customers.”
Meanwhile, CFRA’s equity analyst Arun Sundaram commented on the issue to USA Today. “I see the necessary ingredients for an increase in membership dues in Costco’s 2023 quarterly results.”
It is undeniable that a significant source of Costco’s revenue comes from customers paying for their memberships. About $1,080 million dollars were generated during the first quarter of 2023.
So far Costco has two memberships, Costco Gold Star ($60.00 USD per year) and an Executive ($120.00 USD).