Costco raising membership fees

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Costco raising membership fees
(BDCi) –Despite the struggling economy, Costco Wholesale will raise its standard annual membership fee in 2011.

Every five years or so, this year is no exception, the company said Wednesday it will raise fees in the beginning Nov. 1 for new members and Jan. 1 for renewing members. The annual membership fees will be increased by 10 percent for 22 million members.

Costco said that it will raise annual membership fees by $5 to $55 for U.S. individual, business and business add-on members as well as Canada business members. Executive membership annual fees will also increase in the U.S. and Canada to $110 from $100. The maximum 2 percent reward tied to the executive membership will rise from $500 to $750.

The news came as Costco released its fourth-quarter earnings, which rose 11 percent on a revenue increase of 17 percent.

“Doing it now does not imply that we believe the economy” has bounced back, Chief Financial Officer Richard Galanti said during a conference call with analysts. “Things aren’t getting better fast out there.”

By Janete Weinstein
Photo: Google
Source: Reuters
October 5, 2011
12:30 p.m. PDT

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