Costco has continued its upward trajectory, reporting a surge in memberships and profits even after raising membership fees earlier this year.
According to Costco’s latest quarterly financial report, the company ended November with 77.4 million paid memberships, up from 76.2 million in August. Over the past year, the retailer has added 5.4 million members.
The growth in memberships followed a $5 increase in basic membership fees and a $10 hike for executive memberships. Despite the higher costs, customers have remained loyal, contributing to a successful year for investors. Costco’s stock has risen by 52% since the start of 2024.
Strong Enforcement and Unique Offerings Drive Membership Growth
Costco has also cracked down on membership sharing by installing entrance scanners, a move that may have encouraged more customers to purchase their own memberships.
The retailer continues to attract customers with its “treasure hunt” strategy of offering new and unique products alongside its bulk food staples. “That’s part of the treasure hunt at Costco—always keeping nimble and continuing to change categories to improve the lives of our members,” said Ron Vachris, Costco CEO.
Costco even set a record for single-day pizza sales on Halloween, showcasing its broad appeal.
Expansion Plans for 2025
To accommodate its growing membership base, Costco plans to open 26 new locations in 2025. The company’s steady growth reflects a broader strategy of adapting to customer preferences while maintaining its core appeal.
A Profitable Year for Investors
With much of its income derived from membership fees, Costco’s financial performance has delighted investors. The retailer’s ability to grow memberships amid fee hikes and enforce its policies underscores its resilience and customer loyalty, ensuring its position as a leader in retail.
Costco’s success this year highlights a combination of strategic expansion, product innovation, and customer loyalty, making 2024 a standout year for the company.
