BJ’s Wholesale Club membership fees are going up for the first time in 7 years

New York (CNN) — BJ’s Wholesale Club is hiking the price of its annual membership fee for the first time since 2018.

The warehouse store chain, a smaller rival to Costco and Sam’s Club, announced Thursday that the cost will increase by $5 to $60 per year for its basic plan. The most expensive tier, called Club+, will rise by $10, to $120. The new rates will go into effect on January 1, 2025.

BJ’s explained in a release that the increased prices “allows the company to invest in an even stronger value proposition for its 7.5 million member base, which continues to grow.”

Shares of BJs’ (BJ) soared 5% in premarket trading following a strong earnings period inwhich it reported a 3.8% increase in same-store sales (excluding gasoline).

Annual fees have been one of the biggest profit-generating areas for BJ’s, helping it offset expenses to keep its prices down. Income from memberships jumped 8.4% year-over-year to $115 million, with the company crediting “strength in membership acquisition, retention and higher tier membership penetration across both new and existing clubs.”

BJ’s joins Costco in hiking fees, which also increased its price by $5 in September for many of its popular plans. Meanwhile, Sam’s Club last raised its fees in 2022.

BJ’s is based in Westborough, Massachusetts and went public in 2018. It has about 215 locations, primarily located across the East Coast and in Michigan. The company has fewer stores than its major competitors, and its locations are a little smaller, though BJ’s carries a wider variety of items.