Costco announces first membership fee increase since 2017
Costco announced Wednesday that it will increase its membership fees for the first time in seven years, but a change in Costco memberships could benefit some customers.
Scripps News
If you’ve managed to shop at Costco as a non-member over the years, you’re out of luck now.
The membership wholesaler scans customers’ membership cards upon entry. This means that people who have made purchases with expired or foreign cards cannot easily get in.
“In the coming months, member scanners will be deployed at the front door of your local warehouse,” says a recent update on Costco’s membership website. “Once deployed, all members will be required to scan their physical or digital membership card by holding the barcode or QR code to the scanner before entering.”
California residents are not spared from these changes either. Here’s what you should know.
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Costco confirmed in January that it had begun testing membership card scanning at the entrances of some stores, a way to improve the member experience by eliminating the need to scan cards at checkout.
The comprehensive introduction of scanners at all locations is also intended to curb the influx of non-members using cards that are not their own.
Each guest must be accompanied by a member with a membership card, the statement added. Customers with inactive memberships are asked to “stop by the membership counter before entering the warehouse to shop.”
Customers should be prepared to show their photo ID if their Costco membership card does not have a photo. They can also have their photo taken at the membership counter, the statement said.
Costco bouncers will continue to be on site to assist members.
Why does Costco scan membership cards?
Scanning is another way to protect membership fees. According to the company’s 2023 annual report, the retailer earned $4.6 billion in membership fees from nearly 128 million members in 2023, up from $1.12 billion in fees last quarter.
What is the membership price at Costco?
Effective September 1, Gold Star memberships in the U.S. and Canada will cost $65 (up from $60), and Executive Memberships will cost $130 (up from $120), with the maximum annual premium of 2% increasing from $1,000 to $1,250.
It is Costco’s first price increase since 2017.
Related: Could a Costco with apartments alleviate California’s affordable housing crisis?
Costco wants to prevent non-members from entering and protect the benefits of its paying members.
Costco has not responded to a request for comment from USA TODAY. However, last year the company said in a statement to Business Insider, “We do not believe it is right for non-members to receive the same benefits and prices as our members.”
How many Costco warehouses are there in California?
According to a store directory, there are 139 Costco warehouses across the state, with locations in Bakersfield, Eureka, Fullerton, Irvine, Modesto, Sacramento, San Diego and more. California has the most Costco locations of any state, followed by Texas, Washington and Florida.
