The company has been hinting at a fee increase in 2023. One financial analyst says it's right around the corner.
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Company officials have been hinting at a looming fee increase for months now."A question of when, not if," Costco CFO Richard Galanti has said repeatedly, mostly recently during an earnings call last week.2006, 2011, and 2017, leading many observers to anticipate that an announcement about higher fees is imminent.
"What they find is that as they get the profit infusion from this fee—because it really is pure profit—that they take a portion of that and reinvest it back in lower prices," Lasser said."And that helps to drive the model. It helps to differentiate Costco versus other retailers out there." During last week's earnings call, Costco reported a membership-renewal rate of about 92% in the United States and Canada, an all-time high.
"You can't find many businesses where 92% of the customers say this is so good that I'm going to continue to pay to go there," said Lasser."Costco offers a very good deal for the consumer. You pay to shop there. And the reason why you pay to shop there is because you find prices that are as good or better than anywhere else."
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