Costco Wholesale has announced its first membership fee increase in seven years, raising the annual cost by $5 to $65. Jefferies senior vice president of equity research, Corey Tarlowe, sees this as a positive move for Costco, as the majority of their profits come from membership fees rather than product sales. Tarlowe believes that this fee hike will contribute to Costco's bottom line and drive further earnings growth. He also suggests that the timing of the increase, while not following the usual historical cadence, is justified by Costco's strong value proposition and the current low inflation rates. While competitors like Sam's Club have already raised their fees, Tarlowe does not expect immediate action from others like BJ's, who are performing well without the need for a fee increase.