No rise in membership fees for Australian Costco members

COSTCO says it has no immediate plans to raise its Australian membership fee after its local stores were left out of a global price hike.

Costco has never increased its Australian fee, which remains at $60.

COSTCO says it has no immediate plans to raise its Australian membership fee after its local stores were left out of a global price hike.

The US discount grocery heavyweight is increasing its membership fee in key markets the US and Canada by $5, taking the annual charge to $65 in each of those nations in their respective currencies.

The fee rises have not hit Australia, where Costco is finding success among budget-conscious shoppers happy to buy in bulk.

“At this stage in time, our membership prices are remaining the same for our members,” Costco Australia country manager Patrick Noone told Business Daily.

Mr Noone declined to comment on whether a local fee rise could be on the cards or if Australia was being insulated from the hikes by head office as the group worked to win over shoppers.

Costco charges members an annual fee to shop at its warehouse-style stores.

The US-based retailer announced it would be hiking its fees in key markets overnight on Thursday after it handed down a first-half profit report that failed to impress investors.

Costco has never increased its Australian fee, which remains at $60, since it opened its first outlet in Melbourne’s Docklands in 2009. It now operates eight stores across the nation.

The retailer accounts for 1 per cent of Australia’s $100 billion grocery market and is expected to grab 1.8 per cent by 2020.

Across the globe, Costco earned $US2.6 billion ($3.4 billion) from membership fees last financial year.