Membership-only big-box retail store Costco has found success by giving its loyal customers consistency and value over time — down to the $1.50 hot-dog-and-soda combo that’s been in place since 1985.
SOPA Images | Getty Images But with costs increasing everywhere, it’s no surprise that Costco continues to raise its membership prices, as it’s done approximately every five years, CFO Richard Galanti confirmed during the retailer’s fourth-quarter earnings call.
Image credit: Bloomberg | Getty Images
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If Costco sticks to that schedule, that means members should expect an increase around January of next year.
But the CFO insisted that he’s not announcing a January 2023 increase — only noting it will go into effect “at some point.”
When it does, Galanti says the increase will be used to “drive more value” for customers, and that the retailer strives to “keep things simple.”
That means no additional membership offerings, which currently include the basic $60 Gold Star membership and $120 Executive membership (which comes with 2% cash back on most purchases, up to $1000 per year).
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During Costco’s most recent fiscal year, the retailer’s private brand, dubbed “perhaps America’s weirdest private label” by CNN Business, owing to its breadth and success, brought in $58 million in sales — or about a quarter of the company’s total revenue.
Costco Wholesale Corporation is down over 8% month over month.
