Your Costco Membership May Soon Cost More

By DOUG GROSS (Patch Staff)

Costco should soon raise its membership fees, according to analysts. The membership-only wholesaler has roughly 700 locations worldwide, including 15 stores in the Chicago area.

Following a meeting with Costco officials, analysts with UBS financial services said "the conditions are in place" for the nation's third-largest retailer to raise its annual membership fees.

Historically, the Washington-based company has bumped up fees every five or six years. The last time fees went up was November 2011.

Luckily for Costco shoppers, we aren't talking about an increase that's likely to break the bank.

Most analysts are saying they expect Costco's basic Gold Star Membership fee to jump to $60, from $55, and its Executive Membership fee to increase to $120, from $110.

Executive memberships offer 2 percent cash back on Costco purchases and are designed for people or companies that intend to do a lot of business with the warehouse stores.

The UBS report predicted that the anticipated bump in membership price will have little impact on Costco's popularity with customers.

"We believe Costco’s price transparency, limited [product] offering, and attractive membership structure have helped lend it a level of consistency that’s rare in the world of hardline and broadline retail," the report said.

In an email Tuesday afternoon, Costco downplayed the possibility of a fee hike.

"​We have received clarification that nothing has changed, ​and ​there have been no discussions regarding a membership fee increase," a spokeswoman said in the email.

As Money notes, a recent Consumer Reports survey ranked a Costco membership as slightly more cost-effective than a membership with Sam's Club, even though Costco is a little more expensive ($55 vs. $45).

(Photo by Nandaro, via Wikimedia Commons)