Why Costco Probably Won't Raise Membership Fees in 2022
Costco Wholesale (NASDAQ: COST) is on track to post net sales of over $220 billion in its 2022 fiscal year. But the company sells its merchandise barely above cost. Instead, membership fees generate the bulk of Costco's net income.
Typically, Costco has raised its annual membership fees in the U.S. and Canada, by far its biggest markets, every five to six years. The last increase came in June 2017, driving speculation that the next fee increase could come very soon.
However, in a recent interview, CEO Craig Jelinek said that Costco isn't about to raise membership fees. Here's are two reasons that's a smart idea.
Source Fool.com
