The Impact of Membership Scanners at Costco
Costco Wholesale is implementing a new system of membership scanners at the entrances of all its stores, aiming to prevent non-members from shopping inside. Members will now be required to scan their cards upon entry, replacing the previous method of showing them to an employee.
According to Costco’s customer service page, the rollout of member scanning devices at store entrances is expected to occur over the next few months. Once fully deployed, all members will need to scan their physical or digital membership card before entering the store. Additionally, guests must be accompanied by a valid membership to gain entry.
The Efficiency of the Scanners
Chief Financial Officer Richard Galanti shared that the new scanners not only streamline the entry process but also speed up checkout. By eliminating the need for employees to manually verify loyalty cards at registers and self-checkouts, the scanners introduce a more efficient and convenient shopping experience for Costco members.
Moreover, Costco’s decision to introduce these scanners reflects a larger trend within the retailer to prioritize membership benefits and maintain the exclusivity of certain deals and discounts for members only.
Membership Fee Adjustments
Last month, Costco announced an increase in its basic membership fee for the first time since 2017. The annual fee rose from $60 to $65, with a similar increase for premium memberships from $120 to $130. Additionally, the top annual 2% bonus for executive memberships increased from $1,000 to $1,250.
This pricing adjustment affects approximately 52 million Costco members, with the warehouse club operating 882 warehouses, including 609 in the United States and Puerto Rico. The increase in membership fees corresponds to Costco’s ongoing efforts to provide value to its members while maintaining a sustainable business model.
