Costco says that it will increase membership fees by $5 beginning Sept. 1 in the U.S. and Canada.
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Costco Wholesale is raising its fees by about 10%. Compared with the 20% to 40% inflation we've seen in everything else over just the last 3 years, this isn't unreasonable. This may still sound like a money-grab to some folks, but not us. We used to have the executive membership ($120/mo), but the Costco customer service counter took a quick look at our account and recommended proactively that we downgrade to the basic membership ($60/mo), as we were no longer buying enough to justify it. It's the rare business that will "lose the battle but win the war." Another is AT&T, which has demonstrated time and again its willingness to reverse unintended charges, even if they were due to our forgetfulness or inattention. #loyalty #retail #customerexperience https://lnkd.in/ev6jBvM5
Costco to Lift Membership Fees for First Time in Seven Years
wsj.com
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Have we hit the bottom of the freight market? Costco's recent numbers might give a hint: September Sales on the Rise! Net Sales: Jumped 6% to a whopping $22.75 billion. Store-by-Store:U.S.: Climbed 3.2% Canada: Ascended 6.7% International: A solid 10% gain! Digital Wave: E-commerce shoots up by 3.7% Subtracting gas and forex fluctuations, it's still a glowing report. https://lnkd.in/gZgAASkY
Costco: Unlikely To Provide Meaningful Returns Going Forward (NASDAQ:COST)
seekingalpha.com
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Given the current state of living costs going up, this was bound to happen. As much as there are great deals sold at Costco compared to other retailers, contrary to belief, most consumers spend more money there than other places, volume-wise. Nevertheless, longtime Costco members know the types of merchandises to buy in order to get their money's worth (not to mention their incredible return policies), all of which makes the membership pricing very little in the long run. https://lnkd.in/gx2W9jNP
Costco Hikes Annual Membership Fee for First Time Since 2017
finance.yahoo.com
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It's not always easy to define how the market can negatively impact consumers. This IS NOT one of those situations. Costco released their holiday quarter earnings after hours yesterday. The company beat EPS, but missed on the topline. After-hours weren't looking great as the stock was down. The issue...the market isn't happy Costco is keeping membership fees flat. The retailer beat on EPS, but for some reason the market things the minimal gains from a fee increase should be in the cards. What a joke. Fees have a direct impact on the retailer's consumers. It'll impact new memberships, and would be another point of consideration for members that are on the fence of the value of the membership all together. Raising fees for revenue/margin is lazy...Costco isn't lazy. The market is. To pile on the market...Costco missed on estimated topline revenue. Did you know Costco posts its MONTHLY revenue figures? Nothing says great forecasting like only having to hit 1/3 of the projection value and missing. Nice work, analysts. I'm all for the value the market provides, but when it comes to blatantly encouraging behaviors that create a negative impact on consumers, that's something I believe we should push back on. #retail #consumerbehavior #costco
Costco isn’t raising its membership fee. Analysts are disappointed.
marketwatch.com
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Costco is increasing the price of admission to its warehouse stores for the first time since 2017. Beginning Sept. 1 the members-only chain will raise the price of its $60 Gold Star membership to $65. Its premium $120 Executive Membership will now cost $10 more. Costco on average raises its rates every five and a half years, meaning that customers likely won’t see their bill go up again until at least 2030 if current patterns hold. If you’re thinking about joining Costco, which membership should you choose? And if you’re already a Gold Star member, should you upgrade to the $130 tier? Here's what you need to know.
Costco price increase: Is the $130 Executive Membership still worth the money?
cnbc.com
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Costco Delivers Strong Earnings Amid Sales Challenges Costco Exceeds Quarterly Earnings Expectations Despite Weak Sales Read More: https://cutt.ly/6wv6eJa9 #CostcoEarnings #FinancialSuccess #Retail #QuarterlyResults #BusinessNews #EarningsReport #RetailerSuccess #SalesPerformance #Costco #ProfitGrowth
Costco Exceeds Quarterly Earnings Expectations Despite Weak Sales
https://theindustryview.com
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Business Marketing Student at Seneca Polytechnic | Senior Merchandiser with 20 Years in the Garment Industry
As a consumer, I'm surprised by Costco raising its membership fees during the current high inflation rates. However, from a business perspective, the increase will generate more revenue that Costco can invest in improving its stores and services, enhancing the shopping experience and maintaining competitiveness. However, Costco members might choose not to renew their memberships if they find the higher fees too burdensome, especially in uncertain economic times. To handle the fee increase effectively, Costco should emphasize improved value through consider gathering member feedback, and providing incentives for early renewals to maintain member satisfaction and loyalty.
Costco Raises Annual Membership Fee for First Time Since 2017
bloomberg.com
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Director - Procurement, Research and Margin Improvement (MBA,CSCP,CPSM,LEAN SIX SIGMA BLACK BELT, SCM PRO, SCMP, PMP)
Costco is raising its membership fee for the first time since 2017. The new cost will be $65 a year for individuals and $130 for executive memberships, up from $60 and $120. The new fee will go into effect on Sept. 1 and will impact around 52 million members in the U.S. and Canada. Costco had warned back in May that a membership increase was coming. Membership fees brought in $1.1 billion in the quarter ended in May, about 2% of the warehouse chain’s total revenue of $58.5 billion. Revenue increased 9% over the same period in 2023. Costco reported net income of just under $1.7 billion in the past quarter. Excluding its $1.1 billion membership fee revenue, profit would work out to less than $600 million. William Blair analysts Phillip Blee and Sabrina Baxamusa, who rates shares at Outperform, weighed in on the news, estimating that the fee increase would provide an additional $350 million in incremental sales and operating profit. Jefferies analysts led by Corey Tarlowe lifted their price target to $1,050 from $860 and reiterated a Buy rating on Costco shares. #costco #membershipfee
Costco raises its annual membership fees for first time since 2017, but by how much?
msn.com
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Costco’s recent announcement of its first membership fee increase in seven years marks a significant change for its 52 million members. Despite assurances from Costco’s former CFO that fees would remain unchanged, the new leadership under Gary Millerchip has decided to adjust prices, aiming to balance member satisfaction with corporate profitability—a challenge faced by many subscription-based businesses. Effective September 1, the standard membership fee will rise from $60 to $65 annually, while the Executive level increases to $130, up $10 from its current rate. This increase translates into substantial additional revenue for the company, estimated at over $4 billion annually based on previous fee structures. However, there are concerns that some members may perceive the fee hike as diminishing the overall value of their membership, potentially leading to dissatisfaction and affecting customer retention. In a competitive retail landscape, higher membership fees might make Costco less attractive compared to rivals with lower fees, potentially impacting membership growth and renewals.
Costco’s recent announcement of its first membership fee increase in seven years marks a significant change for its 52 million members. Despite assurances from Costco’s former CFO that fees would remain unchanged, the new leadership under Gary Millerchip has decided to adjust prices, aiming to balance member satisfaction with corporate profitability—a challenge faced by many subscription-based businesses. Effective September 1, the standard membership fee will rise from $60 to $65 annually, while the Executive level increases to $130, up $10 from its current rate. This increase translates into substantial additional revenue for the company, estimated at over $4 billion annually based on previous fee structures. However, there are concerns that some members may perceive the fee hike as diminishing the overall value of their membership, potentially leading to dissatisfaction and affecting customer retention. In a competitive retail landscape, higher membership fees might make Costco less attractive compared to rivals with lower fees, potentially impacting membership growth and renewals. #pricingnews #taylorwellsnews Source: https://lnkd.in/gFnMeJ8c
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Costco (NASDAQ: COST) is charting a unique path to success in 2023. While e-commerce growth slowed, the retailer’s steady earnings from subscription fees keep it strong. Customer traffic is key, and it's been up 5% worldwide. Membership renewal rates are at an all-time high of 93%, supporting future fee increases. Costco's focus? Price leadership and lower profits for now, but higher market share and earnings in the long term. Stay tuned for their Q4 earnings on Sept. 26! #Retail #BusinessStrategy #Costco #SubscriptionModel
Costco's Sales Update: Can Wins in Stores Offset Weakness Online?
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