Consumers are depressed about the economy and the recent spate of fee hikes is only making the situation worse. Today, Costco raised its membership fees that would impact 22 million members.
Costco announced today that beginning November 1, it would increase membership fees for its U.S. Goldstar (individual), business, business add-on, and Canada business members’ membership fee by $5, bring their annual fee up to $55.
It is also increasing U.S. and Canada executive membership fee by $10 to $110. The maximum 2% reward for executive members will also increase from $500 to $750.
Remember this comes soon after Bank of America announced its $5 fee for debt card holders and Citigroup announced that it would start charging $15 monthly fee for its easy checking account.
Now look at Costco’s stock which is off nearly 2% after announcing a 17% increase in Q4 net sales to $27.59 billion.