ISSAQUAH, WA - Costco shoppers never know what they might find in store, which is certainly part of the fun of a Costco run. As the wholesale giant reports its latest earnings for the first 44 weeks of the year, the retail industry might wonder what strategy is behind this news also being reported with an annual membership increase.
Costco is announcing an increase in annual membership fees by $5, effective September 1. According to a release, the fee will impact about 52 million members. The breakdown details:
- United States, Canada Gold Star, Business, and Business add-on memberships will rise to $65 annually
- Executive Memberships in the U.S. and Canada will increase from $120 to $130
- The maximum annual 2 percent reward associated with the Executive Membership will increase from $1,000 to $1,250
June’s retail report showed net sales of $24.48 billion, an increase of 7.4 percent from $22.78 billion last year. Net sales also increased 6.9 percent to $210.55 billion for the first 44 weeks.
Costco operates a total of 882 warehouses globally, 609 of which are in the U.S. and Puerto Rico, 108 in Canada, and 40 in Mexico.
With a notoriously loyal following, what changes might follow increased membership?
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