Costco Hasn't Raised Membership Fees in Over 6 Years. When Will the Next Price Hike Come?

Many people join Costco to save money on groceries and household essentials. The $60 annual fee (or $120 for an Executive membership) often more than makes up for itself in the course of a year of Costco shopping.

But while current Costco members may be okay with paying $60 or $120, it's fair to say that nobody wants to see their cost go up if it can be helped. The reality, though, is that Costco is overdue for a fee hike. The question is, when will it happen?

A fee hike is inevitable

Costco last raised membership fees in June 2017. We're now almost 6.5 years past that point, which, CFO Richard Galanti said during the company's most recent earnings call, is a longer stretch between fee hikes than usual.

Galanti made a point to say that a membership fee hike is "a question of when, not if." And he also said explicitly, "You'll see it happen at some point." But Galanti did not point to a specific date or time frame for raising membership fees.

Will Costco memberships go up in 2024?

As just mentioned, Costco has not said that it will be raising membership fees in 2024. But there are a few reasons why the warehouse club giant might decide to go that route.

For one thing, Costco is getting a new CEO. And while this isn't always the case, sometimes, new management can mean new policies and other changes to how a business operates.

Also, Costco may have been hesitant to raise membership fees this past year or so due to soaring inflation and recession fears. But inflation levels have come down a bit, and consumer spending has held steady. The labor market has also remained strong. So if these economic conditions persist into 2024, which is likely, Costco might take the opportunity to raise fees before conditions worsen.

Finally, let's remember that it has been longer than usual since Costco raised the price of a membership. It's not going to want to do so late in 2023 and risk alienating consumers right in time for the holiday shopping boom. Instead, it's more likely to wait beyond the holidays, which could align with a 2024 fee hike.

Should you keep your Costco membership if the price goes up?

The last time Costco raised fees, a basic membership went from $55 to $60 while an Executive membership went from $110 to $120. It's likely that we'd see a similar pattern for an upcoming fee hike. That would take a basic membership up to $65 and an Executive membership up to $130.

If you're not sure whether it pays to keep your membership at a higher price, just ask yourself a simple question: How much do I save per year by shopping at Costco? If your savings on grocery purchases and other goods you buy there consistently exceeds $65 or $130 (or whatever the official new cost of a membership is), then you have your answer.

Also consider the convenience factor of shopping at Costco. For some people, loading up on bulk items saves them multiple trips to other stores. That means not having to spend the time doing additional shopping runs and not having to pay for gas. So that, too, could be a benefit of keeping your membership even if its cost goes up.

All told, we don't know when Costco will raise its fees, but we know it's going to happen at some point. You may want to tell yourself the cost will go up in 2024 so you're not shocked if it actually happens.