Core Insights - Costco is continuously evolving its membership model, introducing new perks for its over 81 million paying members, which is crucial for maintaining customer satisfaction and loyalty [1][5][9] Industry Overview - The global retail industry is projected to grow from approximately $29.8 trillion in 2026 to about $41.5 trillion by 2031, with a compound annual growth rate of nearly 6.9% [2] - The retail space is highly competitive, making it challenging for companies to differentiate themselves while maintaining profitability [3] Company Developments - Costco plans to introduce four new benefits for its members in 2026, aimed at enhancing the value of membership [11] - The company raised its annual membership fee in September 2024, with Executive members receiving enhanced perks, including a 2% cash back reward of up to $1,250 and a $10 monthly credit with Instacart [6][8] New Member Benefits - **Digital Membership Scanning at Food Courts**: Starting in 2026, members will need to scan their membership cards to access food court items, reinforcing the value of membership [12][13] - **Standalone Gas Station**: Costco is opening its first standalone gas station in Mission Viejo, California, which will only be accessible to paying members [14][15] - **Expansion of Pre-scan Technology**: The company will enhance its pre-scanning technology at checkout, potentially reducing checkout times by up to 20% [17][18] - **Prescription Drug Price Transparency**: A partnership with Navitus will allow members to see the cost of prescription drugs, promoting transparency in pricing [19][20][21] Financial Insights - Membership fees, while a small fraction of Costco's net revenue, are high-margin and contribute significantly to operating income [9]