Costco CFO sounds the alarm on cost increase
The warehouse club giant will need to innovate to avoid a hit to its bottom line.
Costco’s business model differs from other retailers in that the store gets a large percentage of its revenue from membership fees.
While rival Sam's Club charges $50 a year for its standard membership and $110 a year for its Plus membership, Costco’s fees are higher.
Following a fee hike in September 2024, a basic Gold membership at Costco costs $65 a year, while an Executive membership costs $130. Costco's September increase marked the first fee hike in more than seven years.
