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Fri, Sep

Costco members push back on new shopping rules to hit this week — why some executive perks are causing a stir

Costco members push back on new shopping rules to hit this week — why some executive perks are causing a stir

Financial News
Costco members push back on new shopping rules to hit this week — why some executive perks are causing a stir

There are hidden perks to having an Executive Membership. And Costco is now giving its top-tier members something regular shoppers can’t buy: an empty store.

Beginning this week, the warehouse giant’s executive members will be allowed to shop an hour earlier than everyone else, with doors opening at 9 a.m. on weekdays. On Saturdays, the perk is pared back to a 30-minute head start. Those without a premium membership [1] will be turned away.

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The executive membership crowd is not small. The company earned more than $237.7 billion in sales last fiscal year, according to Business Insider [2].

Costco insists the exclusivity is a reward for loyalty.

"Our Executive Members are our most loyal members, and we want to reward them for their commitment to Costco,” a Costco spokesperson said in an email to Business Insider [3].

Still, not everyone is applauding the change, including staff and non-executive members. Here’s what the preferential treatment means for Americans.

Executives only

Costco first rolled out the change on June 30, allowing a short grace period before officially enforcing it on September 1. To access the retailer’s top-tier perks, shoppers need an Executive Membership, which costs $130 annually. That fee comes with extras, including annual rewards [4] and a $10 monthly credit on eligible online orders over $150. By comparison, Gold Star and Business memberships run $65 annually.

Most shoppers approve of the upgrade. Half of Costco’s U.S. members pay for Executive status, and they’re responsible for 73% of the warehouse giant’s sales, according to Costco [5] data. The initial response has been positive, with customers saying it has made their shopping experience smoother.

“It is such a relaxing shopping environment and not survival of the fittest,” one Reddit [6] user, ReasonableCucumber10, wrote on the CostcoWholesale forum.

Another member, posting under the name my4thfavoritecolor, added: “I used it for the first time today. I could make a return without waiting in the giant line and then went and spent $200 elsewhere. Win, win!”

But not everyone is cheering. When Costco announced the policy change, some shoppers accused the warehouse giant of favoring big spenders.

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