{"id":459208,"date":"2022-06-08T00:04:00","date_gmt":"2022-06-07T21:04:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/costco-discussing-membership-rate-hikes-after-renewals-hit-90\/"},"modified":"2022-06-08T00:04:00","modified_gmt":"2022-06-07T21:04:00","slug":"costco-discussing-membership-rate-hikes-after-renewals-hit-90","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/costco-discussing-membership-rate-hikes-after-renewals-hit-90\/","title":{"rendered":"#: Costco discussing membership rate hikes after renewals hit 90%"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40f96578cd4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40f96578cd4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/costco-discussing-membership-rate-hikes-after-renewals-hit-90\/#%E2%80%9C_Costco_discussing_membership_rate_hikes_after_renewals_hit_90%E2%80%9D\" >&#8220;: Costco discussing membership rate hikes after renewals hit 90%&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/costco-discussing-membership-rate-hikes-after-renewals-hit-90\/#Costco_says_it_has_no_plans_to_raise_membership_fees_ahead_of_the_usual_5_12-year_timeframe\" >Costco says it has no plans to raise membership fees ahead of the usual 5 1\/2-year timeframe<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/costco-discussing-membership-rate-hikes-after-renewals-hit-90\/#Tonya_Garcia\" >Tonya Garcia<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_Costco_discussing_membership_rate_hikes_after_renewals_hit_90%E2%80%9D\"><\/span>&#8220;: Costco discussing membership rate hikes after renewals hit 90%&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Costco_says_it_has_no_plans_to_raise_membership_fees_ahead_of_the_usual_5_12-year_timeframe\"><\/span>\n  Costco says it has no plans to raise membership fees ahead of the usual 5 1\/2-year timeframe<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000929056\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000929056\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Costco Wholesale Corp. is talking over membership fee hikes after reporting an all-time renewal rate high of 90%.<\/p>\n<p> The last time Costco raised its membership fee was in June 2017. Historically, fees rise every 5 1\/2 years. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/customerservice.costco.com\/app\/answers\/detail\/a_id\/857\/~\/what-is-the-difference-between-each-type-of-membership%3F\" class=\"icon none\">Gold Star and Business memberships<\/a> are currently $60 per year, and the Executive membership, which includes additional deals, is $120.<\/p>\n<div class=\"paywall\">\n       Costco<br \/>\n        COST,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201191698\/composite\" class=\"negative\">-0.15%<\/bg-quote><br \/>\n       ended the third quarter with 64.4 million paid households and 116.6 million cardholders. The warehouse retailer also ended the quarter with a worldwide renewal rate of 90%, the first time it has reached that level. In the U.S. and Canada, the renewal rate was 92.3%.<\/p>\n<p>Costco also has warehouses in Spain, China, Mexico and other countries around the globe. Executive members make up 43% of the member base and account for 71% of global sales.<\/p>\n<p><strong>Read: <\/strong>Unlike Target and Walmart, beauty and fashion retailers post better-than-expected quarterly results as shoppers fill their <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> calendars<\/p>\n<p>\u201cHistorically, we\u2019ve raised fees every five to six years with the last three increases coming on average about the 5.5 year time frame,\u201d said Robert Nelson, Costco\u2019s senior vice president of treasury, planning and investor relations, on the earnings call, according to a FactSet tran<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a> of the Q3 earnings call.<\/p>\n<p>Nelson said \u201cthere would be more discussions\u201d as the company approaches that timeframe. But \u201cgiven the current macro environment, the historically high inflation and the burden it\u2019s having on our members and all consumers in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>, we think increasing our membership fee today ahead of our typical timing is not the right time.\u201d<\/p>\n<p>Costco reported quarterly sales of $52.6 billion and earnings of $3.04 a share in late May. <\/p>\n<p>May sales, which were announced last week, rose 16.9% to $18.23 billion.<\/p>\n<p>With inflation reaching a 40-year high and putting pressure on consumer grocery bills, there had been concern that Costco would raise the price of its $1.50 hot-dog deal. The retailer isn\u2019t touching that, but muffins and croissants weren\u2019t spared a price hike.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>See: <\/strong>Walmart says consumers are trading down to private label for items like dairy and bacon<\/p>\n<p>Costco estimates that price inflation was about 7% in the fiscal third quarter. Costco, like other retailers, received some holiday merchandise late because of supply chain disruptions, but will hang on to the inventory until the fall.<\/p>\n<p>\u201cAmid an inflationary backdrop, Costco has effectively balanced sales growth and profit in recent quarters with reinvestment,\u201d Stifel analysts wrote after the May numbers were announced.<\/p>\n<p>\u201cWe anticipate this trend will continue, driving double-digit operating income growth over the next several years.\u201d<\/p>\n<p>Stifel rates Costco stock buy with a $515 price target.<\/p>\n<p>\u201cIn an increasingly difficult economic environment, we believe Costco\u2019s extremely competitive pricing will allow the company to take further market share (while its higher-income consumer base helps insulate it against a broader economic slowdown),\u201d wrote Truist Securities in a recent note.<\/p>\n<p>Truist rates Costco stock buy with a $543 price target.<\/p>\n<p>UBS analysts were upbeat on Costco\u2019s customers, and remained bullish on the stock.<\/p>\n<p>\u201cLooking ahead, we expect Costco to see incremental interest from consumers as they attempt to maximize value amid an uncertain backdrop. Plus, its rapid sales growth should keep it more insulated from the discounting that is likely to take place across retail due to the glut of inventory,\u201d said UBS. <\/p>\n<p>UBS rates Costco stock buy with a $595 price target.<\/p>\n<p><strong>And: <\/strong>Target\u2019s steps to reduce inventory glut are correct but are a few weeks late, analyst says<\/p>\n<p>Costco stock has slumped nearly 17% for the year to date while the benchmark S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.95%<\/bg-quote><br \/>\n       is down 12.7% for the period.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Tonya Garcia\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/tonya-garcia\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/tgarcianyc\",\"text\":\"@tgarcianyc\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:tgarcia@marketwatch.com\",\"text\":\"tgarcia@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Tonya_Garcia\"><\/span>Tonya Garcia<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"198_MW\" author-name=\"Tonya Garcia\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fcostco-discussing-membership-rate-hikes-after-renewals-hit-90-11654608253%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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The last time Costco raised its membership fee was in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":459209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-345095\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-459208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=459208"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/459209"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=459208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=459208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=459208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}