COSTCO’S chief financial officer has claimed there has been no significant reaction to the membership price increases.
Gary Millerchip’s comments come after a number of disgruntled shoppers voiced concerns over the rising cost last month with some even declaring they won’t be renewing their Costco membership.
Costco has introduced a price increase in its membership fees for the first time in seven years- leaving shoppers fuming[/caption]
Fees rose from $60 to $65 with the Executive Membership also increasing from $120 to $130 a year[/caption]
Costco fans were left fuming after the chain introduced an increase in its membership fees for the first time in seven years on September 1.
Fees rose from $60 to $65 with the Executive Membership also increasing from $120 to $130 a year.
CFO and Executive Vice President Millerchip defended the price hike when asked about it at the end of last month on an earnings call.
He said: “We were very deliberate in delaying the increase until we felt that we started to see inflation dissipate and our members were spending more in nonfood categories seeing that they were coming through the inflationary period.
“I think there’s been a recognition that in the context of what’s happened ore broadly over the last seven years we stayed true to our principles of really trying to help the member and deliver the value.”
Despite the reasons behind the price changing many people across the US and Canada didn’t agree with the rising costs.
Social media was full of people saying they will not be renewing their memberships and will take their business elsewhere.
“Not renewing – quality of Costco foods has deteriorated over the decades,” one angry member said.
“I’m done then,” another comment said.
“I won’t be renewing,” a further Costco shopper declared.
Costco’s roughly 52 million members will be impacted by this membership fee rise, Axios reported.
But Millerchip remained confident that the price rise hasn’t affected business.
He said: “I’d say we haven’t really heard a significant member reaction from our membership renewal rates.
“There’s no real change in trend.”
Despite the online fury Costco members have known about the membership price increase for quite some time.
The new fees apply to both members who sign up from September 1 and those whose memberships are set to auto-renew.
The annual fee has not changed since 2017, despite multiple years of high inflation rates.
But some shoppers have seemed to be more supportive of the change.
“Not surprised, considering the current economics,” a customer wrote on Facebook.
“Worth it for our family. We’ve been Executive Members for over 40 years!” a loyal shopper said.
Others argued that the price increase was relatively small and wouldn’t make a significant difference to their budgeting.
“Isn’t it increasing 5 dollars per year? People spend more on a small cup of coffee or ice cream,” one comment said.
Meanwhile, some Costco shoppers have grown tired of the chain’s crackdown on membership sharing.
Some have been forced to abandon their full shopping carts after being turned away at the checkout.
Costco membership sharing guidelines
COSTCO has strict rules for membership use that shoppers must follow and they’ve been cracking down on offenders in recent years.
- Primary Member Use: Only the primary cardholder can use this Costco membership card. Sharing it for purchases is not allowed as the photo on the card must match the person using it.
- Household Card: Each primary member can add one free household cardholder who lives at the same address. This person will receive their own membership card and can shop at Costco independently.
- Guest Policy: Members can bring up to two guests per visit to Costco. However, only the member can make purchases. Guests must be accompanied by the member.
- Authorized Cardholder: For an additional fee, you can add an authorized cardholder, such as a family member or friend, who doesn’t reside at your address. They will receive their own card and can shop independently.
Credit: Costco
