Costco raising membership fees for 1st time since 2017

Costco is raising its membership fees for the first time in seven years.

The popular warehouse chain announced the increase on Wednesday as part of a monthly sales report, noting that members will have to pay an additional $5 to $10 annually.

RELATED: Costco's top competitor has a secret weapon to catch the warehouse giant

The new fees, set to take effect Sept. 1, will boost the price of Costco’s basic Gold Star membership from $60 to $65 annually, while the cost for the premium Executive membership will rise from $120 to $130. 

Costco’s annual fee has remained the same since 2017, despite several years of unusually high inflation rates that have finally been cooling down in recent months.

With inflationary pressures squeezing household budgets, Costco’s commitment to offering low prices on a wide range of food and other merchandise has helped make its warehouse an even more popular shopping destination. 

That phenomenon, in turn, has helped boost its profits, making its stock a hot commodity among investors. Costco’s shares have nearly doubled during the last 18 months, increasing the company’s market value by about $180 billion during that span.

RELATED: Are the new Costco rotisserie chicken bags safe?

The Issaquah, Washington-based company operates more than 700 warehouses in the U.S. and Canada.

Besides the fee increase, Costco also disclosed its sales for the five-week period ending July 7 rose by 7% from the same time last year to $24.48 billion.

The Associated Press contributed to this report.