Effective June 1st of this year, your Costco membership will increase, reports CNBC.com. Individual and business Gold Star Memberships will increase to $60 a year, a $5 increase and Executive Memberships will cost $120 a year, a $10 increase. Costco generates 75% of its operating income from membership fees, reports UBS.
The company made the announcement on Thursday when it released its latest earnings, which disappointed Wall Street. Sales and profits were lower than expected. Revenue in the quarter ended Feb. 12, was $29.13 billion, below Wall Street forecasts for $29.86 billion.
It’s not all bad news. Costco is also raising its maximum annual 2% reward to $1,000 from $750 for those who have Executive Memberships, according to marketwatch.com.
UBS reports that Costco credit card customers would need to spend just $500 in a year to break even on a $5 membership fee hike.
This is the first time Costco has increased its membership since 2011.
Retail experts don’t expect the increase in membership costs to cause a drop in membership, due to the deals many people can get on everyday necessities, like baby items (diapers, wipes, formula) prescriptions, household goods, gas and more.
The nearest Costco for Apopka shoppers is at 741 Orange Avenue in Altamonte Springs near state roads 434 and 436.