Hello, folks! Let’s dive into Costco’s latest move to crack down on membership sharing. The wholesale giant is rolling out new card scanning devices at the entrance of its warehouses, aiming to curb the practice of non-members sneaking in to snag those sweet member deals.
The scanning devices have already been spotted in various California locations, including Huntington Beach and Inglewood. Soon, stores in New York, Florida, Pennsylvania, and Texas will join the party. For those hoping to sneak in without a membership, think again.
Costco is now requiring customers to show a photo ID alongside their membership card. If your card lacks a photo, you’ll need to swing by the membership counter to get one.
Previously, you might have strolled into Costco without much hassle, but those days are over. Executives decided it’s high time to ensure that only paying members enjoy the benefits and pricing Costco offers. This new initiative is reminiscent of Netflix’s crackdown on password sharing, which boosted their revenue significantly.
Costco’s motivation is clear: the membership verification push has already paid off, helping the company post a staggering $1.68 billion profit in the third quarter ending in May 2024. This 29% increase from the previous year underscores how effective the new policy has been.
Costco knows you’re using your friend’s membership card. To save you the embarrassment of telling you off when you’re in the checkout line, Costco will try to catch membership moochers before they even get in the door. https://t.co/4MlVkCr4Xc pic.twitter.com/TdVqg71NRh
— ABC7 Eyewitness News (@ABC7) August 8, 2024
CEO Ron Vachris, who took the helm in January, highlighted the efficiency gains from the new system. Verifying memberships at the door decreases checkout times, making the entire shopping experience smoother.
Additionally, this change could help alleviate the notorious congestion in Costco parking lots, especially those with gas stations. By speeding up customer turnover, Costco hopes to make parking less of a Mad Max-style ordeal.
Despite these efficiency gains and a hefty $58 billion in revenue for the third quarter, Costco announced it would increase its membership fee in September. This is the first hike since June 2017, with the standard membership fee rising from $60 to $65 annually.
So, get ready for tighter checks at the door and a slightly higher membership fee. Costco is doubling down on ensuring that only genuine members benefit from their services, all while continuing to drive impressive profit margins.
Meanwhile at #Costco #SSF Airport… pic.twitter.com/QcPxphGIMp
— Stanley Roberts 🎬░N░E░W░S░ ░I░N░ ░B░I░0░ (@StanleyRoberts) August 3, 2024