Attention Costco shoppers. That membership card? You’d better make sure it’s really yours.That’s because the retailing giant known for selling super-sized tubs of ketchup and gargantuan tubes of toothpaste is reportedly working on a system to stop shoppers from sharing their memberships cards.The Kirkland, WA, retailer has reportedly been making shoppers near its Washington State HQ scan their membership cards before they enter the store. That in turn pulls up a photo of the legitimate cardholder on a screen before allowing them to enter.Normally, shoppers flash their card at the employee who may or may not scrutinize the tiny black and white photo on the card. And though cashiers are supposed to scrutinize the identification at the til, Costco began rolling out self check-out lanes at many of its new stores.“Since expanding our self-service checkout, we've noticed that nonmember shoppers have been using membership cards that do not belong to them,” CFO Richard Galanti wrote in a statement last June.“We don't feel it's right that nonmembers receive the same benefits and pricing as our members.”The new system is thought to be a trial ahead of a broader roll-out, and photos of it in action are popping up on social media..Costco executives have previously hinted it is preparing to crack down on card sharing, which costs an undisclosed amount of revenue. In Canada, prices range from $60 for the basic fee to $120 for the so-called ‘executive’ membership.In 2023, the company raked in USD$4.6 billion in membership fees worldwide, representing about 72% of its overall profits. At the end of the third quarter it had 128 million cardholders, including 32.3 million executive members.It is reportedly considering a hike in its membership fees on the heels of a nearly 5% decline in sales. The last time it increased prices was in 2017. Analysts suggest even a modest increase would result in at least $1 billion in additional revenues.Speaking on the Today show on December 26, Galanti said “you’ll see it happen at some point... it’s not a question of if, but when.”“We haven’t needed to do it. We like providing extreme value. Certainly, while we’ve gone a little longer than the average increase, we feel we certainly have driven more value to the membership.”
Attention Costco shoppers. That membership card? You’d better make sure it’s really yours.That’s because the retailing giant known for selling super-sized tubs of ketchup and gargantuan tubes of toothpaste is reportedly working on a system to stop shoppers from sharing their memberships cards.The Kirkland, WA, retailer has reportedly been making shoppers near its Washington State HQ scan their membership cards before they enter the store. That in turn pulls up a photo of the legitimate cardholder on a screen before allowing them to enter.Normally, shoppers flash their card at the employee who may or may not scrutinize the tiny black and white photo on the card. And though cashiers are supposed to scrutinize the identification at the til, Costco began rolling out self check-out lanes at many of its new stores.“Since expanding our self-service checkout, we've noticed that nonmember shoppers have been using membership cards that do not belong to them,” CFO Richard Galanti wrote in a statement last June.“We don't feel it's right that nonmembers receive the same benefits and pricing as our members.”The new system is thought to be a trial ahead of a broader roll-out, and photos of it in action are popping up on social media..Costco executives have previously hinted it is preparing to crack down on card sharing, which costs an undisclosed amount of revenue. In Canada, prices range from $60 for the basic fee to $120 for the so-called ‘executive’ membership.In 2023, the company raked in USD$4.6 billion in membership fees worldwide, representing about 72% of its overall profits. At the end of the third quarter it had 128 million cardholders, including 32.3 million executive members.It is reportedly considering a hike in its membership fees on the heels of a nearly 5% decline in sales. The last time it increased prices was in 2017. Analysts suggest even a modest increase would result in at least $1 billion in additional revenues.Speaking on the Today show on December 26, Galanti said “you’ll see it happen at some point... it’s not a question of if, but when.”“We haven’t needed to do it. We like providing extreme value. Certainly, while we’ve gone a little longer than the average increase, we feel we certainly have driven more value to the membership.”
