Expect Some Changes On Your Next Visit To Costco

Costco, the warehouse club where you can get a rotisserie chicken (this is why it's so cheap), 1-ounce gold bars (here's a guide to buying them), or a $1,150 funeral casket all under the same roof. The highly successful retailer must be doing something right because it boasts 600-plus locations in the United States and Puerto Rico alone. In the fall of 2024, three more clubs will come online in Bend, Oregon, and in Napa and Pleasonton, California.

With this said, beginning on September 1, 2024, shopping at the cavernous warehouse club is going to get slightly more expensive. For the first time since 2017, the retail giant is raising its membership prices. While paying more for anything is seldom good news, at least the price hike is fairly modest. The regular Costco membership, called a Gold Star membership, is increasing from $60 to $65 per year.

The premium Executive membership, meanwhile, which rebates 2% annually on eligible Costco purchases plus a few other perks, is jumping from $120 to $130 per year. Those two fee increases both represent a jump of 8.33% in membership fees. At first glance, that might seem significant but when considered over a period of six-plus years since the last time Costco raised its membership fees, it's lower than the compounded annual rate of inflation for most other goods and services.

If you're thinking about using some underhanded tricks to shop at Costco without paying the new, higher membership fee, that'll be more difficult going forward. That's because the warehouse club is installing new card scanners at the entrances of all its stores. Whereas previously, Costco shoppers could quickly flash their cards at Costco employees, the new card-scanning procedure will be more scrutinizing. Customers without a valid Costco card in their own name will be redirected to the membership desk.

Of course, the reason for this change is to stop non-members from shopping at Costco, which the company feels is unfair to paying members. Note that certain legitimate workarounds still exist for shopping Costco as a non-member, but the retailer is seeking to end more brazen violations of its policies. In particular Costco cites an increasing number of self-checkout lanes as the root of the problem.

Initially, these self-checkout kiosks didn't ask for a driver's license or other identification card to corroborate the membership card, like the attendants at traditional checkout lanes do. This allowed non-members to borrow someone else's membership card, enter the store, and make purchases via self-checkout. Nowadays, the self-checkout kiosks ask for an ID to match the membership card, but nonetheless, Costco is taking things one step further and preventing non-members from entering the store without a valid reason. Reportedly, scanning membership cards at the store entrance may supplant asking for ID at checkout, which will streamline the checkout process.

In discussing the upcoming fee changes in the fall, some critics are concerned about how Costco's new, higher membership fees will impact Americans who are already cash-strapped — in particular, senior citizens who may rely on a fixed income. That said, the membership-fee hikes are pretty small and Costco doesn't raise them often. To wit, Costco's last two membership hikes occurred in 2017 and 2011.

If you are a senior, access to Costco's discounts on items like prescription drugs, hearing aids, and eye care can easily offset the small premium in membership fees. As for everyone else, note that the Costco Executive membership, which again, rewards its members by rebating 2% of their spending each year (e.g., $5 fro a $250 trip), is increasing the annual maximum reward by 25%, from $1,000 per year to $1,250.

If you are considering becoming a Costco member, act quickly. There are still a couple of weeks remaining to lock in the old $60 and $120 rates before September 1, 2024, rolls around. Further, as always, Costco offers to refund membership fees at any time if you're dissatisfied or feel like you're not getting your money's worth from being a member. Finally, true Costco superfans can apply for the retailer's very own co-branded Costco Anywhere Visa, which offers additional rewards.