Costco memberships are about to get more expensive

Before you go, we thought you'd like these...

Jim Cramer: Will Lower Gas Prices Hurt Costco?

Costco is expected to raise its membership fees by nearly 10%, according to UBS analysts.

The retailer will likely increase its annual fees from $55 to $60 for its basic membership and from $110 to $120 for its executive membership, analysts said in a research note following a meeting with top Costco executives including the company's chief financial officer, Richard Galanti.

EXPLORE MORE: Nearly 80 Sears and Kmart stores are about to close

The change is expected to happen in late 2016 or early 2017.

"If its comp were to dramatically slow in the meantime or if there were some major macro disruption, it might delay this increase," analysts wrote. "But, it sounds like that's not likely."

Click through the slideshow for 11 items you should always buy at Costco:

12 PHOTOS
11 items to always buy at Costco
See Gallery
Costco memberships are about to get more expensive

1. Fresh produce

Photo via Getty

2. Gas 

Photo via Getty

3. Wine

Photo via Getty

4. Dairy products 

Photo via Getty

5. Eyeglasses

Photo via Getty

6. Giftcards

Photo via Shutterstock

7. Dog food

Photo via Getty

8. Baking items 

Photo via Getty

9. Bakery goods 

Photo via Getty

10. Oils (coconut oil, olive oil, vegetable oil)

Photo via AOL

11. Costco's snackbar (hotdogs, pizza, soda) 

Photo via Shutterstock

of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

Costco has historically raised its membership fees every five to six years, and the last time the retailer raised its fees was in November 2011. Costco did not immediately respond to a request for comment.

The fee increases shouldn't have a major impact on membership renewals and sales, according to analysts.

"We believe Costco's price transparency, limited [product] offering, and attractive membership structure have helped lend it a level of consistency that's rare in the world of hardline and broadline retail," analysts wrote. "While its traffic has lost some luster as of late, there's a good case it can sustain 3-4% growth for a while."

RELATED: 5 items you should always buy in bulk

6 PHOTOS
5 items to always buy in bulk
See Gallery
Costco memberships are about to get more expensive

Paper towels, $23.99 (12 rolls)

Photo via Getty

Dishwasher detergent, $12.82

Photo via Getty

Tooth paste, $7.44 (2 boxes)

Photo via Getty

Oatmeal, $9.96 (4 boxes)

Photo via Getty

Pasta, $10.44 (4 boxes)

Photo via Getty

of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

NOW WATCH: We tried the Costco food court and it totally blew us away

See Also:
McDonald's is making its biggest ever change to the Big Mac
Diet Coke is becoming completely unrecognizable outside of America
12 items you should always buy from Costco

SEE ALSO: Consumer Reports put Costco and Sam's Club head-to-head — here's the verdict

Read Full Story

People are Reading