More Costco members are paying double for Executive membership due to perceived value

Costco is seeing a significant increase in members upgrading to its Executive membership tier, which costs $130 annually—double the basic Gold membership. The warehouse club reported that membership fee income rose 10.7% year over year to $1.373 billion in Q3 2026, driven by both new members and upgrades. Executive memberships grew 9.6% to 41.2 million paid members. The article explains that the Executive tier offers perks including 2% cash back on most purchases (up to $1,250/year), early shopping hours, and discounts on services. For the membership to pay for itself, members need to spend $3,250 annually. A Consumer Reports-commissioned study found Costco has the lowest prices among major grocers, 2.14% below Walmart. Membership fees contribute about 72% of Costco's operating income, making retention and upgrades critical to the company's profitability.