Costco Has Made 3 Big Changes Over the Last Year, Including a New Perk That's Dividing Many of Its 79.6 Million Members

Core Insights - Costco Wholesale is evolving its membership rules and policies, introducing new perks for its highest tier cardholders to enhance customer loyalty and drive sales growth [1][3] Membership Fee Changes - Costco has announced its first annual membership fee increase in seven years, effective September 1, 2024, raising Gold Star and Business members' fees from $60 to $65 and Executive members' fees from $120 to $130 [5][6] - Executive cardholders will also see an increase in their annual cash back eligibility from $1,000 to $1,250, which is expected to enhance the value proposition for these members [6] Store Access Policies - Starting in August 2024, Costco will require members to scan their membership card or QR code at store entrances to limit access to paying members only [9][10] - Non-members will no longer be able to purchase food court items, including popular offerings like the $1.50 hot dog combo, reinforcing the exclusivity of membership benefits [12] Exclusive Shopping Perks - Costco has introduced exclusive early morning shopping hours for Executive cardholders, allowing them to shop from 9 a.m. to 10 a.m. on weekdays and Sundays, and from 9 a.m. to 9:30 a.m. on Saturdays [14][15] - Approximately 47% of Costco's 79.6 million paying members are Executive tier, contributing to 73.1% of net sales during the fiscal third quarter, highlighting the importance of this segment for the company's revenue [16] - The introduction of exclusive shopping hours aims to encourage Gold Star and Business members to upgrade to Executive membership, thereby increasing overall membership revenue [17][18]