2. INCREASING PENETRATION OF EXECUTIVE MEMBERS
Executive members pay $110 as membership fee (as opposed $55 paid by the other members) to get 2% (maximum of $750) annual rewards on their purchases. They represent one-third of Costco’s overall customers and two-third of its revenues. Executive membership penetration is on an upward trend and has increased from about 23% in mid 2007 to about 38% in 2012.