Costco rarely makes dramatic moves, which is exactly why its latest fee increase landed so hard with shoppers. For many members, the higher price was manageable. For others, it became the moment they finally reconsidered whether the warehouse ritual still penciled out.
What Costco changed and why it mattered
Costco announced on July 10, 2024 that it would raise annual membership fees effective September 1, 2024, its first increase since 2017. The standard Gold Star and Business memberships moved from $60 to $65, while Executive memberships climbed from $120 to $130. The company also lifted the maximum annual 2% Executive reward from $1,000 to $1,250, framing the increase as part of its long-running value model.
On paper, the math looked modest. A $5 increase for basic members and a $10 increase for Executive members does not sound like the kind of change that triggers a broad consumer backlash. Costco has historically enjoyed the kind of loyalty most retailers envy, built on low markups, limited assortment, and the sense that members are getting access to disciplined pricing rather than gimmicks.
But membership fees are different from shelf prices because they are paid upfront and judged emotionally. Shoppers may tolerate slightly higher grocery bills spread across dozens of visits, yet pause when a retailer asks for more money before they even enter the building. In a period when households are already tracking subscriptions, streaming bills, and service charges more closely, that annual renewal notice can feel less automatic than Costco is used to.
Are members really leaving in large numbers?
The short answer is no, not in any dramatic, visible wave. Costco’s own results show the business remains exceptionally strong. In fiscal 2025, the company reported net sales of $269.9 billion and said it operated 914 warehouses by year-end, underscoring that traffic and expansion have not stalled.
More importantly, renewal rates remain remarkably high. Costco reported U.S. and Canada renewal rates around 92.9% and worldwide renewal rates around 90.5% in fiscal 2025, levels most retailers would consider extraordinary. Membership fee revenue also continued rising, helped by both the price increase and ongoing sign-ups.
That means the “walking away” is real, but quiet and selective rather than catastrophic. Some lower-frequency shoppers are likely letting memberships lapse at renewal, downgrading from Executive, or deciding that one household membership shared less often is enough. Even as that happens, Costco is still attracting enough new members and keeping enough core loyalists to offset the losses.
Outside traffic data points in the same direction. Placer.ai data cited by industry coverage showed Costco continuing to post year-over-year foot traffic growth into 2025 and early 2026, suggesting that the customers who remain are engaged and visiting often. In other words, attrition may be happening at the margins, but the chain’s most committed shoppers are still showing up.
Why the value debate is getting sharper
The real issue is not whether Costco is in trouble; it plainly is not. The issue is that the value equation is becoming more personal. A family that buys meat, produce, paper goods, gas, and pharmacy items regularly can still recover the membership fee quickly. A smaller household, an urban shopper with limited storage, or someone making fewer bulk trips may now see the annual fee as one expense too many.
Costco understands that tension, which helps explain why it has been adding perks around its higher-tier membership. Executive members still earn 2% back on qualified purchases, and the company has leaned into premium benefits, including new shopping-hour advantages and added service-related incentives. Those moves are designed to make the higher fee feel less like a toll and more like a membership with status and measurable return.
That strategy may work well with Costco’s best customers, but it can also widen the gap between heavy users and casual ones. For frequent shoppers, the warehouse remains one of the strongest bargains in American retail. For borderline members, the fee hike may have simply forced a long-delayed calculation: if they are not using Costco often enough, loyalty alone is no longer a sufficient reason to renew.