Costco to Increase Membership Price, Begins Testing EV Stations
Membership Price Increase Imminent?
During its quarterly earnings call on Thursday, Costco’s Chief Financial Officer, Richard Galanti, announced that the wholesale retailer plans to increase the price of its membership. However, the exact timing is still unknown. Galanti noted, "It’s a question of when, not if. You’ll see it happen at some point. We can’t really tell you if it’s in our plans or not."
Six Years Since Last Price Increase
Costco has not raised its membership price since June 2017, and Galanti pointed out that six years is "a little longer" between price increases than in the past. This announcement comes as the company continues to grow its number of memberships year-over-year, with a 7.9% increase in household memberships from last year.
New Initiatives for Savings-Seeking Consumers
In addition to its plans for membership pricing, Costco has announced new initiatives for savings-seeking consumers. The company is partnering with Sesame to offer a new healthcare program and has begun testing electric vehicle (EV) stations at its locations. This is in line with its existing practice of selling gasoline to members at lower prices.
Cracking Down on Card Sharing
The retail giant is also taking steps to address the issue of card sharing at its self-checkout counters. Since expanding self-checkout to more of its stores, Costco has noticed an increase in abuse of this service. In response, the company is conducting spot checks at the self-checkout counters to prevent non-members from taking advantage of the service.
Conclusion
As Costco continues to adapt to changing consumer habits and technological advancements, it is clear that the company is committed to providing value to its members while maintaining its competitive edge in the retail market. The planned membership price increase, testing of EV stations, and crackdown on card sharing are all steps in this direction.
FAQs
Q: When can we expect the membership price increase?
A: Costco’s CFO, Richard Galanti, states that the exact timing is unknown, but it is a matter of "when, not if."
Q: How long has it been since Costco last raised its membership price?
A: The company last raised its membership price in June 2017, which is six years ago.
Q: What other initiatives is Costco introducing for savings-seeking consumers?
A: Costco is testing EV stations at its locations and has partnered with Sesame for a new healthcare program, in addition to selling gasoline at lower prices for its members.
Q: Why is Costco cracking down on card sharing at its self-checkout counters?
A: The company has noticed an increase in abuse of self-checkout service since expanding the feature to more stores, and is taking steps to prevent non-members from using the service.
