Costco May Raise Membership Fees By This Much, Experts Predict
Though it's a pretty amazing perk, the biggest appeal of Costco isn't the food court but rather the fact that the warehouse chain sells so many bulk items for cheap. Unfortunately, experts are predicting that you may have to pay more for your Costco membership again soon.
Equity analysts at Wells Fargo forecasted earlier this year that "membership fee looks poised to increase in the next 18 months and represents a potential catalyst for sales and earnings." Such price hikes occur about every 5.5 years, and the most recent one took place in June 2017. Now, analysts at Stifel are also predicting that Costco will raise membership fees within the next year, according to Market Watch.
"Costco shares have outperformed the S&P 500 in the 12 months leading to a membership fee increase announcement in each of the three price increases since 2006 (2006, 2011, and 2017)," the analysts wrote. For the last 12 months, Costco shares are up 29.3%, outperforming the S&P 500, per Market Watch's Tonya Garcia.
The Stifel analysts specifically predicted an 8.3% price hike. Thus, a Gold Star membership would likely increase to $65 a year, while an Executive membership would likely increase to $130 a year. With almost 60 million member households, the increases would generate a ton of additional funds for the warehouse chain. European members would likely be the first to see such increases, followed by U.S. members in 2022, according to Business Insider.
The good news is that there are plenty of hacks that can help you save big when you shop at Costco. Luckily for you, we rounded up some of the top money-saving tips from Costco employees to help you keep more money in your pocketbook.
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For more Costco news, check out:
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