Costco Sees Membership Growth and Rising Profits Despite Price Hike

Gene J. Puskar/AP

Costco Warehouse in Cranberry Township, Pennsylvania.

This year has been a cause for celebration among Costco investors, as the company’s first membership fee increase in years did not deter customers during the fall season. According to Costco's quarterly financial report, the company ended November with 77.4 million paid memberships, up from 76.2 million in August, marking an impressive addition of 5.4 million members over the past year.

Membership growth continued despite a $5 increase in basic membership fees and a $10 rise for executive memberships. Given that a significant portion of Costco's revenue comes from these membership fees, this growth has translated into a successful year for investors; the company's stock has surged by 52% since the beginning of 2024.

"That's part of the treasure hunt at Costco is always keeping nimble and continue to change those categories that we can find new areas to improve the lives of our members," said Ron Vachris, Costco CEO.

To further bolster its membership base, Costco has implemented stricter enforcement of its membership rules by installing scanners at entrances to prevent unauthorized sharing of memberships.

The company also set several records in the last quarter, including selling its highest number of pizzas in a single day on Halloween. In response to its growing member count, Costco plans to open 26 new locations in 2025.

While known primarily for bulk food items, company leaders highlighted that the introduction of new and unique products has played a crucial role in attracting customers over the past year.