Nearly a year after Costco warned that they'd have to hike membership fees (and didn't), CFO Richard Galanti told investors "It's a question of when, not if," noting that the last time the company raised its membership fee was in June of 2017.
"You know, it’s a little longer this time around since June of ’17, so we’re six years into it," Galanti said, accordsing to a transcript of last week's earnings call. "But you’ll see it happen at some point. We can’t really tell you if it’s in our plans or not."
Costco has historically raised membership fees every six years or so, however Galanti says it's not quite time to do so again.
"You'll see it happen at some point," he said, adding "We'll let you know when we know. We can’t really tell you if it’s in our plans or not"
The big box store's Gold Star membership has cost $60 since 2017, after a $5 increase that occurred that year from $55. "Executive memberships" cost $120.
The comments about a price increase come as Costco topped market estimates for quarterly revenue and profit as consumers flocked to its stores for cheaper groceries and other necessities, helping offset feeble demand for big-ticket discretionary items. The membership-only retailer has driven robust sales growth owing to its ultra-low prices for essential goods and a loyal member base, helping boost its market share despite a tough economic climate.
Although demand for discretionary items like sporting goods and houseware has been under pressure, strong sales gains in consumables like fresh foods and candy have helped Costco, while its cheap gas prices attracted more members. The company saw a nearly 8 percent rise in total paid household members at the end of the reported quarter, while its income from membership fees jumped 13.7 percent, to $1.51 billion. -Epoch Times
"Traffic continues to do very well ... and our renewal rates continue to be very strong," said Galanti.
Gold rush!
Last week the Organic Prepper Blog noted that Costco is selling out of gold bars.
In a quarterly earnings call last week, Costco chief financial officer Richard Galanti told investors that the bars have been flying off the shelves, reported CNBC, saying, “I’ve gotten a couple of calls that people have seen online that we’ve been selling 1 ounce gold bars. Yes, but when we load them on the site, they’re typically gone within a few hours, and we limit two per member.”
And it certainly makes sense to buy gold (or silver) because the banking system is so volatile it really cannot be trusted. I don’t believe for a second that our system as it is right now will last much longer. Sure, there’ll be a new system to replace it, but you can darn well bet that WE will not be the ones who benefit from it. In fact, I strongly suspect that the new system will be CBDCs (Central Bank Digital Currencies) and all the surveillance and control those entail.
