This change only affects Executive Members, who pay $130 a year for the plan. Costco announced the update last month, which was part of an ongoing effort to reward those who remain loyal shoppers. The additional perk follows fee hikes for the service last year, the retailer's first increases in seven years.
New Perks and Revenue Come as Membership Grows
In September, Costco offer increased prices for its “Gold Star,” “Business” and “Business Add-On” plans by $5 to a total $65 a year in the United States and Canada. The same-day delivery service raised annual membership fees for its Executive Member plan by $10 in return for beefed-up benefits, including up to $1,250 in rewards a year, an increase from $1,000, and a $10 monthly credit for same-day delivery through its website or through Instacart.
Costco's most recent earnings report reveals its Executive Memberships have increased 9% from the prior year to 37.6 million cardholders. These higher-priced memberships now represent 73% of the company’s total sales, which is significant when you consider how much they matter to Costco’s business model.
Costco tires relies heavily on membership fees as a large source of income and to be able to keep overhead expenses in control and enabling the company to be able to outcompete its rivals. In 2024, Costco made $4.8 billion solely from membership fees —a 5% increase year over year.
The access benefit is also the latest example of how the retailer is rewarding its best members and driving growth through loyalty and exclusive perks.
