Costco tests new scanners to crack down on membership sharing

Costco, the popular membership-based shopping club, is taking steps to address the issue of membership sharing, where non-paying individuals use the cards of paying members to gain access to their stores. Traditionally, Costco members only needed to show their membership cards to enter the store, but memberships are non-transferable. While households could receive one extra membership card, sharing memberships has been a concern for the company. Basic memberships cost $60 annually, while executive memberships, offering perks like a 2% cash-back reward, are priced at $120 annually.

To combat membership sharing, Costco is testing a new approach: shoppers must now scan their membership cards at store entrances. This change aligns with Costco’s introduction of self-checkout registers, which made it easier for non-members to slip through the system. The company’s spokesperson explained that this test aims to match members with their cards at the entrance, creating an enhanced member experience.

During the summer, Costco also began asking shoppers to present photo identification and their physical membership cards at self-checkout registers, mirroring the procedure in regular checkout lanes. Costco justified these measures by stating that it’s unfair for non-members to enjoy the same benefits and pricing as their paying members……….[read more]

Rising Dough

How do businesses like Costco balance attracting new customers and ensuring fairness to their paying members? How can innovative technology like this at Costco ensure members are not letting non-members use their membership to impact customer relationships?