You May Have To Pay More For Your Costco Membership Soon, Experts Say
You may have to pay more for your Costco membership soon, financial analysts from Wells Fargo recently said.
Price hikes usually happen at the warehouse every 5.5 years, the experts note, making 2021 a more expensive one if you're a Costco fan. The last time the price increased was in 2017 when a Gold Star Executive membership rose from $110 to $120 annually, and the Gold Star Everyday membership increased from $55 to $60. And, if the amount of memberships keeps increasing as it did in 2020 (from 59.1 million member households in 2019 to 59.7 million), this could lead to even more profits for Costco, according to Fox Business.
Although Costco CEO Craig Jelinek has said that the physical warehouses will still be most important, the grocery store chain started testing curbside pickup at three New Mexico locations earlier this year. Analysts say this uptick in digital shopping and a return to more normal shopping habits post-COVID-19 means the future for Costco looks bright—even though, for you, it likely means your membership costs will soon get more expensive.
In regards to Costco's new curbside pickup service, Richard Galanti, Costco's Chief Financial Officer, recently said on a call with investors: "The pilot's going well. Our members have responded to it, and basket sizes have actually surpassed our expectations. Our focus, of course, is how can we be more efficient at doing it to determine if this offering can become scalable and make economic sense for us."
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