Analyst from UBS's questions to Costco Wholesale Corp (COST) leadership • Q4 2024
Question
An analyst from UBS, on for Michael Lasser, asked about the initial customer response to the recent membership fee increase and whether Costco expects to see a rise in customer attrition as a result.
Answer
Gary Millerchip, an executive, explained that the fee increase was deliberately delayed by two years to avoid burdening members during COVID and high inflation. He stated that there has not been a significant member reaction and no real change in the trend of membership renewal rates. He believes members recognize the value Costco provides, citing stable prices on items like the hot dog and rotisserie chicken, and that the company's ongoing investments in wages and lower prices demonstrate its commitment to delivering value.