For Costco, raising membership fees can offset some of that deflationary bite. The wholesale club prides itself on ultra-low markups, and membership fees help it do that.
As grocery prices remain flat or tick down, those fees will offset some of the deflationary bite Costco faces this year.
With 52 million paid memberships affected by the move, that translates to roughly $390 million of additional revenue per year, which the company says will be largely reinvested into the business.
Management said it wasn't going to raise its membership fee until they saw inflation under control.
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