Costco recently raised its membership fees for the first time in seven years, with the base Gold Star membership now costing $65 and the Executive membership $130.
With around 130 million members, Costco's management likely felt confident that the fee increases would not significantly impact membership retention, given the substantial growth since 2014.
Though the $1.1 billion from membership fees is a small portion of Costco's $58.5 billion total revenue, the increase could enhance net income in future quarters.
Costco's decision to raise membership fees can be attributed to the low cost of serving members, allowing profit from the entire increase to directly benefit its bottom line.
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