Costco has been hinting at the possibility of a membership fee increase for approximately a year and a half. Outgoing CFO Richard Galanti has consistently mentioned that it’s more a matter of “when” than “if.”
However, the retailer recently confirmed that there are still no immediate plans to implement the much-discussed fee increase. During a call with investors following the release of its latest earnings results on March 7, Galanti disclosed that the company is not eager to roll out a price increase at this time.
Galanti emphasized that Costco is pleased with its current performance and the positive trajectory of its business metrics. He stated, “We like the fact that we’re performing well… most all metrics are going in the right direction in our business right now,” indicating that there is still plenty of room for growth.
While Galanti expressed confidence that the company will eventually raise its membership fees, he noted that any such changes will not occur under his tenure. Galanti is set to step down from his role as CFO on March 15, after serving in the position for nearly 40 years.
For now, Costco members will continue to wait for information about the timing of the proposed fee increase. Currently, the retailer charges $60 annually for its basic Gold Star Membership and $120 annually for the higher-tier Executive Membership, which includes additional benefits. The last fee increase occurred in June 2017, with the Gold Star Membership rising from $55 to $60 and the Executive Membership from $110 to $120.
Historically, Costco has raised its membership fees approximately every five years and seven months. Following this pattern, members might have anticipated a fee increase in January 2023.
During a December 2023 earnings call, Galanti acknowledged that Costco had delayed its fee increase longer than usual. However, he noted that the delay has provided members with additional value in the interim. With Galanti and former CEO Craig Jelinek departing their roles, Costco’s leadership is undergoing significant changes. It remains uncertain whether new CEO Ron Vachris and new CFO Gary Millerchip will be more inclined to implement a fee increase than their predecessors.
In other news, Costco announced plans to expand its Kirkland Signature sushi, which debuted at its Issaquah, Wash., warehouse last year. Galanti mentioned that the offering will soon be available at two additional locations.
Galanti also disclosed that Costco is gearing up to introduce the inventory lookup feature it has been teasing since last year, with a rollout expected in a few months. This feature, long-awaited by Costco shoppers, will enable members to conveniently check online whether specific items are available in stock at warehouses near them.