COSTCO differs significantly from typical supermarkets, with membership fees being one of the most notable distinctions.
While anyone can freely enter grocery chains like Walmart and Whole Foods, Costco requires a membership card to access its warehouses and bulk products — and the current Chief Financial Officer (CFO) is talking about price increases.
There are a few ways to shop at Costco without an annual membership, like using Instacart for deliveries or purchasing a Costco gift card to spend during a visit.
However, to shop at Costco without restrictions or limitations, you need to pay a subscription.
Costco currently charges $60 for basic Gold Star membership and $120 for Executive membership.
Both analysts and Costco predict these rates will increase in the future, as top executives have indicated that rate increases are not only possible, but inevitable.
STATE OF INDECISION
During a call on May 30, Costco’s new CFO, Gary Millerchip, confirmed that the company has not yet decided when to implement the long-awaited membership fee increase, Eat this reports.
His predecessor, Richard Galanti, has consistently stated in earnings calls since 2022 that a rate hike is “a question of when, not if” in 2023.
At the time, Galanti added that he would “be purposely coy about when that would happen.”
The following month, at Costco’s annual shareholder meeting, CEO Craig Jelinek revealed that the company continued to delay increasing membership fees, in accordance with the outlet.
“In our opinion, now is not the right time to do this,” he said.
“That’s not to say we won’t at some point, but at this time we have no plans to charge the fee.”
In the same vein, executives postponed the increase because the company remains in strong financial health.
Quarterly net sales grew 9.1% to reach US$57.39 billion, compared to US$52.60 billion in the previous year, according to the Costco Wholesale Corporation.
In the first 36 weeks, net sales rose 7.0% to $171.44 billion, up from $160.28 billion last year.
This quarter’s sales figures were positively influenced by a 0.5% to 1.0% increase due to the change in the fiscal calendar, which included a fifty-third week last year.
“This is one of the key things we use this money for, because it allows us to widen the gap on the competition and bring greater values and improve our overall operation for the member,” said Costco CEO Ron Vachris.
Costco Membership Sharing Guidelines
Costco has strict rules for subscription usage that shoppers must follow and has been cracking down on violators in recent years.
- Core Member Usage: Only the primary cardholder can use this Costco membership card. It is not allowed to share it for purchases, as the photo on the card must correspond to the person using it.
- Domestic Card: Each Prime Member can add one free Household Cardholder who lives at the same address. That person will receive their own membership card and can shop at Costco independently.
- Guest Policy: Members can bring up to two guests per Costco visit. However, only the member can make purchases. Guests must be accompanied by a member.
- Authorized cardholder: For an additional fee, you can add an authorized cardholder, such as a family member or friend, who does not reside at your address. They will receive their own card and will be able to make purchases independently.
Credit: Costco
“When we get to the point where we feel like the time is right [for a fee increase]Of course,” Millerchip said, “we will be very open and direct in communicating this.”
HOT DOG!
Millerchip also verified reports about what will happen to the popular hot dog combo sold at the store.
The hot dog and drink combo is a mainstay in the Costco food court.
For just $1.50, you get a 20-ounce drink and a quarter-pound beef hot dog.
Following the departure of former CFO Galanti in March of this year, rumors began to spread about the combination’s price change.
Galanti has been credited with maintaining the combined price of $1.50 since 1984.
In the face of rising food prices, the new CFO, Gary Millerchip, spoke out to calm supporters’ concerns.
Millerchip said on May 30 that the combination will remain available — at least for now — at this cheap cost.
“I want to confirm that the $1.50 hot dog price is safe,” said Millerchip CNN.
In other Costco news, shoppers are discovering a significant member perk: the ability to return items for a full refund, even after having the products for several months.
And a Costco insider recommended that shoppers pay close attention to a sign in the store, which could help them determine whether the exclusive hack is allowed at the warehouse retailer.
This story originally appeared on The-sun.com read the full story
