Fees make up a majority of the warehouse club’s income
Costco is raising its membership fees, for the first time since 2011.
The $5 increase applies to all U.S. and Canadian members, who will now pay $60. Annual fees for executive members will increase from $110 to $120.
The fee boost will impact 35 million members, the company said. It takes effect June 1. Fees make up a majority of the warehouse club’s income, analysts say, with the warehouse operations barely turning a profit.
Costco currently operates 728 warehouses, including 508 in the United States and Puerto Rico.