Costco announces first membership fee increase since 2017
Costco announced Wednesday that it will increase its membership fees for the first time in seven years, but a change in Costco memberships could benefit some customers.
Scripps News
Next time you go to Costco, make sure you have your plastic or digital membership card — and a matching ID — with you. The members-only warehouse retailer is really cracking down on non-members now.
Costco confirmed in January that it had begun testing membership card scanning at the entrances of some stores, a way to improve the member experience by eliminating the need to scan cards at checkout.
The comprehensive introduction of scanners at all locations is also intended to curb the influx of non-members using cards that are not their own.
“In the coming months, member scanners will be deployed at the front door of your local warehouse,” says a recent update on Costco’s membership website. “Once deployed, all members will be required to scan their physical or digital membership card by holding the barcode or QR code to the scanner before entering.”
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Guests must be accompanied by a member with a membership card. Customers with inactive memberships are asked to “stop by the membership counter before entering the warehouse to make purchases.”
Members without a photo on their membership card will also be directed to the member counter to have a photo taken and added. Otherwise, a valid photo ID must be presented in addition to the membership card.
Why does Costco scan membership cards?
Scanning is another way to protect membership fees, which mean a lot of money for Costco.
According to the company’s 2023 annual report, the retailer earned $4.6 billion in membership fees from nearly 128 million members in 2023, up from $1.12 billion in fees in the last quarter.
In addition to preventing non-members from entering the store, Costco wants to protect the benefits paid members receive. The company expressed these concerns in a statement to Business Insider last year: “We do not believe it is right for non-members to receive the same benefits and prices as our members.”
“We are committed to offering our members the best products at the lowest possible prices, and our membership fee allows us to offset many of our operating costs and offer our merchandise at more affordable prices,” a statement on the Costco website reads. “Your membership gives you access to our tremendous buying power, resulting in the lowest possible prices on the items our members want most.”
How much does a Costco membership cost? Costs will soon rise
In addition to the scanning process, Costco will soon also increase the cost of membership – the first price increase since 2017.
As of September 1, Gold Star membership in the US and Canada will cost $65 (previously $60), and Executive Membership will increase from $120 to $130. The maximum annual premium of 2% will increase from $1,000 to $1,250.
The new fee will be charged for each automatically renewed membership starting September 1st.
How do I get a Costco membership?
Each Gold Star and Executive membership includes two membership cards. You can also get a digital membership card to use in the Costco app. Visit the Costco website for instructions.
Do I need a Costco membership for the pharmacy?
NO. Anyone can buy prescription drugs online or in a warehouse. Accepted payment methods include cash, debit or bank cards, Costco Shop Cards and Visa.
Costco near me: How many locations are there in Texas?
Costco has 41 locations in Texas, including at least one in every major city.
