Shopping carts are lined up in front of a Costco store on February 25, 2021 in Inglewood, California. (Photo by Mario Tama/Getty Images) Costco is certain to raise its membership fees in the future, but as the sixth anniversary of the last fee hike approaches, the company says there are no immediate plans to do so while membership rates are at all-time highs. "In our view, it's a question of when, not if," Costco CFO Richard Galanti told investors on a Q2 earnings call on Thursday.
Galanti acknowledged that June would mark six years since the Washington-based retail giant last raised the price of its Gold Star membership, which currently costs $60.
He said that Costco typically raises its membership fee every five years and seven months, on average. Costco last increased its membership prices in June 2017.COSTCO MAINTAINING LOW ROTISSERIE CHICKEN PRICESAs to whether fees will go up soon, Galanti said, "we'll let you know." At the end of the second quarter, Costco's membership renewal rate came in at 92.6% in the U.S.
and Canada, and 90.5% worldwide, each up 0.01% from the previous quarter. "Membership growth has remained strong," Galanti reported. "We ended the second quarter with 68.1 million paid household members and 123.0 million cardholders, both up more than 7% versus a year earlier." COSTCO ANNOUNCES MIXED EARNINGS REPORT AS SLOWER SALES OF ‘BIG-TICKET’ ITEMS OFFSET BY HIGHER FOOD SALESGalanti said that at the end of Q2, Costco had 30.6 million paid executive memberships.