Costco, which has four warehouses in Northeast Ohio, said the increases would affect about 35 million members, about half of whom are Executive members.
CLEVELAND, Ohio -- Will Costco's plans to raise its annual membership fees by $5 to $10 this summer make shoppers less likely to shop there?
Not according to fans like Kevin Gamin of Medina. He and his wife renewed their membership in December, when Goldstar membership rates were still $55 per year, but he says they would absolutely have renewed at $60.
"We basically buy two beef tenderloins, and we've already gotten our money back" in savings, he said. "Their meat department has an incredible selection, so especially if you have a family or do a lot of cooking, with those two tenderloin orders, we've already paid back the cost. Buying in bulk with all the stuff they have there, within a year, you easily get your money's worth."
Celina Forbes, a Costco member in Westlake who shops at the Avon store, said: "I am a relatively new Costco member and just joined in the last few months. Honestly, it's saved me so much already that a modest increase isn't a huge deal. However, if it raises every year then I'd be more inclined to reevaluate if I would keep my membership."
Costco Wholesale Corp., which has 728 warehouses worldwide, announced the membership rate increase during its second-quarter earnings report last week. Costco has four stores in Northeast Ohio: Avon, Boston Heights, Mayfield Heights, and Strongsville.
Starting June 1, Costco will increase annual membership fees by $5 to $60 per year for Goldstar members in the U.S. and Canada, Business, and Business add-on members.
Executive memberships in the U.S. and Canada will go up to $120 per year, from the current $110 per year ($60 for the membership, and $60 for the executive upgrade). Executive members get 2 percent rebates on their purchases, plus discounts on travel and other services, and can use the cards at Costco stores worldwide.
Costco also raised the maximum annual 2 percent reward for Executive members to $1,000 from $750.
In comparison, Sam's Club memberships cost $45 per year at the basic level and $100 for a Sam's Plus membership, which includes cash rewards, extra shopping hours, and other benefits.
Sam's Club has seven stores in Northeast Ohio: Brooklyn, Canton, Cuyahoga Falls, Fairlawn, Mentor, Oakwood Village, and Sheffield Village.
BJ's Wholesale Club charges $50 for Inner Circle members or $100 for BJ's Perks Rewards, which includes a 2 percent reward on purchases, redeemable the register in $20 increments.
BJ's has stores in Akron, Avon, Middleburg Heights, North Canton, Warrensville Heights, and Willoughby.
Costco, based in Issaquah, Washington, said the increases would affect about 35 million members, about half of whom are Executive members.
The company said it made $636 million in membership fees in the second quarter of its fiscal year, and $1.27 billion in membership fees for the first half of the year.
For the second quarter of its 2017 fiscal year that ended Feb. 12, Costco said its profits fell to $515 million, or $1.17 per diluted share. For the same period last year, it reported $546 million in profits, or $1.24 per diluted share.
Net sales for the second quarter were $29.1 billion, or $29.8 billion if you include the $636 million in membership fees.
Net sales for the first half of the year were $56.6 billion, or $57.9 billion including membership fees.
Sales at stores open at least a year, an important indicator of a retailer's health, rose 3 percent among U.S. stores in the second quarter, and 2 percent among U.S. stores in the first half of the year.
Costco has 508 warehouses in the U.S. and Puerto Rico, 94 in Canada, 37 in Mexico, 28 in the United Kingdom, 25 in Japan, 13 in Korea, eight in Australia, and two in Spain. The company also sells via e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, and Taiwan.