The days of mooching off a friend’s Costco membership will soon be over. Costco Wholesale has announced it will be placing membership scanners at the entrance door to each of its locations in an effort to implement stricter store policies.
Before entering the warehouse, shoppers will be required to scan the barcode on their physical membership card or the QR code on their digital Costco ID. Simply flashing a membership to an attendant will no longer be enough.
Plans to show a fraudulent membership card that does not include the owner’s photo have also been quashed by Costco, which has now instructed its employees to ask for photo ID. In any case, Costco attendants will “encourage you to stop by the membership counter to have a photo taken to have on your card,” the company described.
Guests to Costco must be accompanied by a valid membership holder — and yes, that also applies to Costco’s food court and famous $1.50 hot dogs.
The wholesaler said the scanners are expected to be implemented “in the coming months.” Costco Wholesale Canada has yet to respond to Global News’ request for comment, but social media pages dedicated to Canadian Costco fans report that the scanners have already made their way into a handful of stores in Ontario, B.C. and Alberta. The company first began testing membership scanners in January.
Costco’s finance chief Richard Galanti told CBS at the time that scanning memberships at the door would eliminate the need to do so at cash registers and self-checkouts. “It speeds up the process at entry and speeds up the process at the checkout,” Galanti said.
He said more Costco shoppers have been sharing membership cards since 2020, amid the COVID-19 pandemic. According to the Costco 2023 Annual Report, the wholesaler made a whopping US$4.6 billion (C$6.3 billion) in revenue from membership fees paid by their 128 million cardholders last year.
Costco members, and any new signees, will face higher fees next month when the company increases its annual membership cost by $5 to $65. The bump applies to Canadians holding an individual, business or business add-on membership. Those with executive memberships will see a $10 increase to $130 and will also have their maximum annual rewards increased. The annual fee was last raised in June 2017.
Impact on Shoppers
This new policy could have a significant impact on shoppers who rely on shared memberships or have inactive memberships. They will need to either purchase their own membership or be accompanied by a valid member. The policy will also increase security for Costco as it helps prevent unauthorized access and protects membership fees.
The Reasoning Behind the Change
Costco has confirmed that the new policy is meant to address the issue of non-members using memberships that do not belong to them. The company has seen a rise in membership sharing since the start of the COVID-19 pandemic and has decided to take action to curb this practice. Costco's decision to implement membership scanners is a direct response to the growing trend of membership sharing.
Costco's Statement on the Change
In a statement on its website, Costco said: "Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner. Guests must also be accompanied by a valid member for entry. If your membership is inactive, expired, or you would like to sign up for a new membership, the attendant will ask that you stop by the membership counter prior to entering the warehouse to shop. Additionally, if your membership card does not have a photo, please be prepared to show your valid photo ID."
The Future of Costco Membership
The new policy is likely to be met with mixed reactions from shoppers. Some may welcome the increased security and the crackdown on membership sharing. Others may find the new policy inconvenient or even unfair. The implementation of membership scanners is part of a larger trend of companies trying to crack down on unauthorized access and protect their revenue streams. It will be interesting to see how the new policy impacts Costco's membership numbers and customer satisfaction.
The Bottom Line
Costco's membership scanners are a direct response to the rising trend of membership sharing. The company is looking to ensure that only valid members have access to its stores and that its membership fees are protected. The new policy is likely to be a major change for Costco shoppers, but it is also a sign of the times as companies look for new ways to protect their revenue streams.
