It will be more difficult for Costco customers to pass on their membership cards.
The chain of warehouse-style membership stores, including several on Long Island, will soon require all customers to scan their membership card’s barcode or QR code at the store entrance, the retailer said in a statement on its website. Anyone entering a Costco store must be accompanied by a valid membership card, the company added.
Members with non-photo cards will also be asked to show a valid photo ID upon entry. Costco said employees will be stationed at store entrances to help customers navigate the new scanners.
Costco said Friday it had nothing to add beyond its online post.
The move follows an announcement by the retailer last month that it would increase the price of a standard annual membership from $60 to $65 effective September 1. The retailer’s premium offering, the “Executive Membership,” will increase from $120 to $130 annually.
“Membership fees help offset costs so we can keep our prices low,” Costco said in a July statement announcing the fee increase.
“A moderate increase in fees will enable us to offer our members even greater added value.”
To enter a Costco store, the company has long required customers to show their membership card, but the new policy makes scanning mandatory. Costco, which began testing card scanners at several locations earlier this year, launched a major initiative to curb membership sharing after management noticed an increase in non-members shopping with other customers’ cards following the expansion of self-checkout options.
Last year, Costco announced plans to add more staff to its self-checkout lanes to discourage non-members from using borrowed cards. The company also requires customers to show their membership cards at all checkouts.
Costco’s official policy always limited the company’s $1.50 hot dog and lemonade offer to members, but until earlier this year, that rule was rarely enforced.
Some customers took to social media this week to rail against Costco’s new card scanners, complaining that the initiative was redundant since the company already checks memberships at checkout. Some people online also expressed concern that lines at the entrance will grow longer while people learn to use the scanners.
Costco, one of the largest shopping clubs in the world, had approximately 71 million member accounts and 128 million cardholders at the end of 2023. Membership fees generated $4.6 billion in revenue for Costco in 2023, an 8% increase over 2022.
