BIG NEWS: Hot dogs are still $1.50 at Costco, but a membership got a little more expensive on Sunday.
(NEXSTAR) – Hot dogs at Costco may still be priced at $1.50, but membership fees have increased starting Sunday. For the first time since 2017, the warehouse club has raised its annual fees for U.S. and Canadian Gold Star and Business members by $5, bringing the cost to $65.
New Executive Membership Fees
Additionally, Executive membership fees have risen from $120 to $130 annually. Executive members, who receive a 2% annual reward, can now earn up to $1,250, an increase from the previous maximum of $1,000.
Reason for the Price Hike
Costco announced the fee increase in July, stating that the adjustment was necessary to “offset many of our operating costs and price our merchandise lower,” according to the company’s website based in Issaquah, Washington. The company emphasized that membership fees contribute to its significant buying power, which helps maintain low prices on popular items.
Costco’s Popularity and Expansion
Costco’s popular Kirkland Signature products, high-quality goods, beloved food court, and free samples have won over American shoppers, driving its stock price from around $300 in January 2020 to nearly $880 on Tuesday.
Shoppers have even formed social media communities dedicated to Costco, where they share tips, news, and deals.
As of early September, Costco operates 882 warehouses worldwide, with 609 located in the United States and Puerto Rico. International locations include Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden.
