ISSAQUAH, Wash. — Warehouse retailer Costco may be increasing its annual fee for members, according to an analyst from UBS, a financial services company.
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A look at the possible Costco price hike
Business Insider reported that, according to a research note from a meeting with Costco executives and UBS analysts, Costco may raise membership fees by almost 10 percent.
Such an increase would mean basic membership fees increase $55 to $60 and $110 to $120 for executive membership.
‘If its comp were to dramatically slow in the meantime or if there were some major macro disruption, it might delay this increase,’ analysts wrote. ‘But, it sounds like that’s not likely.’
The price increase would come in 2017, according to the note.
The Chicago Tribune reported that non-Costco members were surveyed by UBS. Less than 35% said they did not want to buy in bulk. Nearly 25% said Costco membership costs too much.
‘We have not announced if, or when, we would increase our annual membership fee,’ Richard Galanti, Costco’s executive vice president and chief financial officer told The Huffington Post Friday.’Historically, it has been increased about every five or six years. I would guess that many equity analysts following our company might assume that same pattern,’ Galanti said.