Costco to Raise Membership Fees in November

will join and increase its fees but unlike the bank, it will be sooner than you can say wholesale.

The company announced that effective Nov. 1, it will increase annual membership fees by $5 for U.S. Goldstar (individual), Business, Business add-on and Canada Business members. With this increase, all U.S. and Canada Goldstar, Business and Business add-on members will pay an annual fee of $55. Also effective Nov. 1, U.S. and Canada Executive Membership annual fees will increase from $100 to $110, and the maximum 2 percent reward associated with Executive Membership will increase from $500 to $750.

The fee increases will impact about 22 million members, roughly half of which are Executive Members. There are stores in Laguna Niguel, the only city in the country that has multiple locations.

Costco says the fee increases are due to the rising costs of food as well as clothing. 

According to a company press release issued on Wednesday, the company reported its net sales jumped 17 percent to $27.6 billion in the fourth quarter, which included sales from a Mexican joint venture. Comparable sales were up 12 percent system wide; in the U.S. they increased 10 percent, while internationally comparable sales grew 19 percent.

Costco earned $478 million in the fourth quarter, an adjusted $1.08 per share.  Up 10.6 percent, profits were still below expectations of $1.10 by Wall Street’s major analysts, the release states.

The Seattle-based company hasn't raised its main membership fees since 2006.

Will you pay the new fees or say forget it? Tell us in comments.