2023-09-30 22:53:24
Costco executives have indicated that the company plans to increase the price of its annual subscriptions, and that this is not a possibility, but a question of when.
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During a conference call with investors on Tuesday, Costco Chief Financial Officer (CFO) Richard Galanti was asked regarding the possibility of possibly increasing the price of membership, the New York Post reports.
“The question is not if it will happen, but when it will happen,” he replied, adding: “We will let you know when we know. So stay tuned. We will keep you posted.”
Costco’s basic membership, or the “preferred member” card, is $60 per year in Canada. The “executive member” card costs customers $120 per year.
Costco last raised the price of its membership cards in June 2017, KTLA 5 reports.
Mr. Galanti noted that membership price increases generally occur every five or six years, but he assured that the right time to make such an increase has not yet arrived.
The average transaction at Costco fell 4.5% among U.S. shoppers in the fourth quarter, particularly among “high-priced non-food items.”
Costco member spending, however, was “relatively strong” in the grocery category.
Mr. Galanti also indicated that the number of members increased during the fourth quarter.
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