Core Insights - Costco's membership card is the most significant item sold, with membership revenue increasing by 5% to $4.8 billion and a membership base of nearly 137 million cardholders, maintaining a 90% renewal rate [1][2] - The company raised its membership fees for the first time in seven years, increasing the Gold Star Membership by $5 and the Executive Membership by $10, with plans to invest the additional revenue to enhance member and employee experiences [2] - Membership fees contribute approximately 60-70% of Costco's operating profits, providing a stable income stream that mitigates the impact of discretionary spending volatility [3] Membership Growth - Membership growth has slowed recently, prompting Costco to take measures to address this trend [3][4] - Despite the slowdown, Costco's CFO expressed satisfaction with the overall membership results, particularly among younger demographics, with a growth rate of just over 5% and Executive Membership growth at 9% [5][6] - Year-over-year growth has decelerated slightly, attributed to the comparison with strong growth from the previous year, but the company remains optimistic about membership health [6] Value Proposition - Costco membership is perceived as a good value, with savings on gas and regular purchases often offsetting the membership fee [7] - The company is committed to enhancing membership value through initiatives such as extended opening hours and additional benefits like Instacart and gas discounts [9][10] - Retail analysts affirm that the Costco brand holds significant value for customers, suggesting that members would be willing to pay more for the benefits associated with membership [10][11]