Costco (COST) raised its membership fees for the first time in seven years, effective from September 1. The warehouse giant announced that as a part of this membership increase, members will now pay an additional $5 to $10 annually. This marks the first adjustment in Costco’s annual fee since 2017, despite years of high inflation that has only recently started to ease. Costco’s hike in membership fees is estimated to affect 52 million members.
Details of Costco’s New Membership Plans
Effective from September 1, Costco’s basic Gold Star membership plan will cost $65, an increase from $60 per year, while the premium Executive membership will see an increase in fees to $130 from $120 per year. Amid inflationary pressures squeezing household budgets, Costco continues to offer low prices across its wide range of products, making it extremely popular among customers.
COST’s Sales Increased in July
In fact, this has resulted in rising sales for the wholesale retailer. In July, COST saw net sales of $19.26 billion, up by 7.1% year-over-year. Additionally, the company’s comparable sales rose by 5.2%, compared to 5.3% during the same period last year. Furthermore, the retailer’s e-commerce platform saw an increase in comparable sales of 20.2%.
Currently, Costco operates 884 warehouses, including 611 in the United States and the remaining in international markets.
Looking at Costco’s July sales, according to TipRanks “Bulls Say, Bears Say,” analysts bullish on COST stated that the retailer’s e-commerce sales surpassed the broader market.
Is COST Stock a Buy or Sell?
Analysts remain bullish about COST stock, with a Strong Buy consensus rating based on 19 Buys and four Holds. Over the past year, COST has surged by more than 60%, and the average COST price target of $924.55 implies an upside potential of 3.6% from current levels.
