Costco tested members with higher fees. The results are in

By Megan Ulu-Lani Boyanton, The Seattle Times

The annual membership cost to enter Costco’s big-box warehouses and stock up on bulk groceries — not to mention the free food samples — has gone up. But that’s not stopping fans from becoming or remaining loyal members.

Since September 2024, individual members in the U.S. pay $65 per year, a $5 increase from past dues. Executive memberships have been $130 per year, up from $120.

But loyalists of the Issaquah, Washington-based retailer weren’t dissuaded: 68.3 million people held individual memberships by the end of fiscal 2025 — an upsurge from 63.7 million in 2024 and 58.8 million in 2023, according to Costco’s annual report filed this month with the U.S. Securities and Exchange Commission.

The number of business memberships also increased to 12.7 million in 2025 from 12.5 million in 2024 and 12.2 million in 2023.

Despite the increases, the growth rate of total paid members has slowed slightly, with a 6% increase year over year, compared to a 7% increase in 2024 from 2023.

Membership loyalty and growth are essential to our business,” the company wrote in the report.

So far, it has maintained that faith. Costco boasted a membership renewal rate in the U.S. of about 92% and a global renewal rate of around 90% at the end of fiscal 2025, according to its report.

The company didn’t immediately respond to a request for comment for this story.

Lenora Good, a resident of Kennewick, has maintained her Costco membership for over 30 years. Several factors have kept her devoted to the company: the Kirkland brand, the friendly staff and “the best deal on hearing aids that I’ve found.”

She hasn’t noticed much employee turnover at her local store. Costco offers an employee stock purchase plan, so “a lot of the worker bees are part owners,” Good said. “They have more pride in what they’re doing.”

Good admits that she didn’t notice when the membership cost went up. “I’m sure I’ve gotten the $5 back in many different ways,” she added.

Costco is attracting new members, too.

“Costco membership is becoming increasingly popular for younger customers,” said David Bellinger, a director and senior analyst at Japanese investment banking and securities firm Mizuho Securities, in an email.

Bellinger estimates that nearly half of new member sign-ups are under the age of 40, with the average member age falling in the low 50s.

“This is helping to cushion the impact from lingering inflation across the board, particularly within the food category,” Bellinger said.

He said these patrons tend to sign up online, with “modestly higher churn rates,” or the rate at which a customer cancels their membership.

According to Bellinger, Costco “senior management (is) indicating this could lead to a downtick in membership renewal rates into 2026.”