Costco has officially implemented price hikes across several of its membership tiers.
Transcript:
Caroline Woods: Here’s what we’re watching on TheStreet today.
It was a rough first trading day of the month, with the Dow, S&P 500, and Nasdaq all finishing in the red. New economic slowdown fears stoked the sell-off, as the manufacturing sector showed signs of weakness in August.
Investors are looking ahead to Wednesday’s JOLTS report, as well as the release of the Federal Reserve’s Beige Book.
In other news – Costco has officially hiked its membership price for the first time in 7 years. Back in July, the wholesale retailer said it would increase the membership fees for three of its plans – Gold Star, Business, and Business Add-on. And now Costco has increased a fourth – it’s Executive membership. The membership fees have increased by $5 to $65, depending on your plan.
Costco says 52 million memberships will be impacted by the price increases, with more than 50% of them coming from its Executive tier.
In 2023, the company brought in $4.6 billion in revenue from membership fees, an 8% increase from 2022. But the price hikes aren’t Costco’s only big change – it continues to crack down on membership sharing. Shoppers are now required to scan their membership card as they enter the store and have been encouraged to use a card with their photo on it.
Costco now also requires all non-members to be accompanied by someone with a membership, making it more difficult to share cards amongst family and friends.
That’ll do it for your Daily Briefing – I’m Caroline Woods with TheStreet.
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