During an earnings call on Thursday, Costco CFO Richard Galanti confirmed that membership prices will soon be increasing.
Earlier this year, Galanti responded to a question about the possibility of membership prices rising “in light of companies like Amazon and Netflix raising their fees.”
While he confirmed the fee increases, Galanti noted that Costco “look[s] less at what others do” and more so at the intervals between Costco’s previous increases.
At the Costco Wholesale Corporation fiscal Q1 2023 conference, Galanti stated that Costco “[has] no problem thinking about doing it and doing it ultimately. So, it’s a question of when, not if.”
Galanti added that members may see prices spike as early as January 2023; however, he assured that the company is in no rush to raise membership fees.
“If we have to wait a few months or several months, that’s fine,” Galanti said.
Galanti, who is also the executive vice president and director of Costco, expressed confidence in the loyalty of Costco members, stating that the renewal rates were continually increasing regardless of inflation.
He added that the Executive Membership, Costco’s most expensive membership tier, has been seeing a higher renewal rate than Gold Star and Business memberships.