Costco Keeps Membership Fees Steady, Hints at Possible Future Hike

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Costco,Membership Fees,Retailer

Costco announces that it will not increase its membership fees at the moment, but does not rule out the possibility of a future hike. The decision is based on factors such as renewal rates, new member sign-ups, and loyalty. The company's total cardholders have increased by 7.3% compared to the previous year.

Costco is keeping its membership fees at their current prices, a move that may allow customers to breathe a sigh of relief — for now. The retailer, however, did not rule out a future hike."It’s when, not if, still," CFO Richard Galanti said Thursday during the company's second-quarter earnings call, referring to membership fees.

There had been speculation leading up to Thursday about the possibility that a membership fee hike announcement could coincide with Costco’s latest quarterly report, but it did not come to pass.Galanti told analysts and investors that renewal rates, new member sign-ups and loyalty "are continuing in the right direction." These are some of the factors that the company looks at when deciding on membership fees.SOME OF COSTCO'S BEST TIDBITS FROM VOICE OF THE RETAILERThe company reported its total cardholders increased to 132 million as of the end of the second quarter, a 7.3% increase over the same period a year ago."It really is a function, and I don’t think it would be done simply because, hey, things have slowed down a bit, let’s do it now," Galanti adde

 

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