Don't worry, Costco isn't raising the price of its membership — yet

• Costco fans don't have to worry about the chain raising its membership fees, at least not yet.
• CFO Richard Galanti said last week that it has been about 6 years since the last hike.

Now might be a good time to buy a Costco membership for any shoppers who have been on the fence.

The popular warehouse retail chain hasn't raised the prices of its memberships — $60 or $120, depending on which plan you purchase — since June 2017. It typically raises membership fees about every five and a half to six years, but a top executive recently said the chain isn't planning to bump the fees — at least not yet anyway.

Consumers have been dealing with enough inflation on their shopping receipts that Costco plans to hold off, for now, on hiking what it charges to be a member.

Costco Chief Financial Officer Richard Galanti said last week in an earnings call that the company believed it could likely raise membership prices without significantly hurting its membership numbers, but for a variety of reasons, Costco leadership didn't feel the need to raise the fees immediately.

"At the end of the day, with the headline being inflation, we feel very good about if we want to do it, can we do it without impacting, in any meaningful way, renewal rates or sign-ups or anything," Galanti said during the May 25 call.

He continued: "And at some point, we will. But our view right now is that we've got enough leverage out there to drive business, and we feel that it's incumbent upon us to be that beacon of light to our members in terms of holding them for right now. It's not a matter of a big time, but we'll let you know as soon as we know."

The question of how long it will be until Costco raises membership fees has been around for months, as the company nears the six-year mark since the last hike, when prices rose from $55 and $110 to their current $60 and $120. Galanti has made similar comments in recent investor calls in March and September 2022, both times calling the decision a "when, not if" matter.

Costco leadership, like many economists, is almost surely watching US inflation data. The Consumer Price Index, a key gauge of prices, has continued to cool. A 4.9% increase in prices in April from a year earlier came in below an increase of 5% in March.

Costco recently checked in near the top of an annual survey of America's most trusted brands, second only to Patagonia. Part of the reason the warehouse giant is beloved by so many of its members comes from prices tied to buying products in bulk and inflation-proof items like the $1.50 hot dog and soda combo that CEO Craig Jelinek swears by.

Galanti also said during the call that Costco has been lucky to have not suffered as much retail theft as competitors like Walmart and Target, and said the company is seeing shifts in buying patterns like shoppers buying less beef and more of cheaper meat options like chicken and pork, which he said is typical during periods of inflation or economic uncertainty.