Costco CFO warns customers of membership price change, claiming its a question of when, not if
COSTCO chief financial officer Richard Galanti has hinted that the membership price is due to change.
According to the exec, an increase is a matter of “when, not if.”
Costco relies on its membership fees to deliver wholesale prices to its 127.9 million members nationwide.
But those fees could be going up soon, according to recent comments by chief financial officer Richard Galanti.
Speaking during Tuesday’s quarterly earnings call, he said that an increase in membership fees is “a question of when, not if.”
“You’ll see it happen at some point,” he added.
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“We can’t really tell you if it’s in our plans or not. We’ll let you know when we know."
Galanti did not indicate how much the fees may increase, but the membership price has remained the same since 2017.
Historically, Costco raises its membership fees every five years or so.
Currently, a basic Gold Star membership is $60 annually while the more premium Executive tier is $120.
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There are many perks of a Costco membership beyond access to the chain’s 597 wholesale stores.
This week, Costco added a new healthcare benefit for its members.
With prices starting as low as $29, cardholders now have access to digital services like Telehealth checkups, label panel tests, and mental health therapy appointments.
No insurance is needed to access the new services.
OTHER WHOLESALE OPTIONS
While Costco is the most popular wholesale club, it is not the only choice shoppers have.
Walmart-owned Sam’s Club offers similar savings at its 600 stores nationwide.
Membership at Sam’s Club is $50 a year for the lower Club tier and $110 for the premium Plus tier.
But you don’t need to shop wholesale to save money on groceries and household essentials.
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The chief executive of Walmart has promised to focus on cheaper prices as customers feel the sting of inflation.
And Target has introduced a new line of 250 affordable homeware products.
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