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During an earnings call on Thursday, Richard Galanti, Costco’s CFO, appeared to suggest that the wholesaler might increase its membership fees at some point in the near future. Galanti responded to an analyst who asked whether the weak economic outlook affected Costco’s decision on the timing of a rate increase. Galanti said economic considerations certainly played a role in the company’s “thinking process” on the matter.
In the past, Costco has increased its membership fees approximately every five years, with the most recent rate increase in June 2017. It’s possible that the company will increase fees again in the future, but there is no officially information on when this could happen.
Here’s more from Fox Business:
“What we’ve said again and I’ll say it again is our view is all parameters as it pertains to member loyalty and the value proposition we’ve improved for our member, we have no problem with it to think about it… and eventually do it,” he said during the earnings call. “So it’s a matter of when, not if.”
Galanti went on to say that Costco management believes the company is “in a very competitive position right now” and “if we have to wait a few months or a few months, that’s fine.”
According to InsiderGalanti also said during the same earnings call that Costco plans to open 24 stores this fiscal year, in addition to relocating three others.
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