New Shopping Hours for Exclusive Members
In a bid to enhance the shopping experience for its premium customers, Costco has announced a new perk for Executive Membership holders. Starting September 2, these members gain access to the warehouse an hour earlier, allowing them to shop at 9 a.m. every day. In contrast, regular members can start shopping at 10 a.m. on weekdays and 9:30 a.m. on Saturdays.
This change provides Executive members with first dibs on popular items, including Kirkland brand rotisserie chickens and bulk toilet paper. The early access also extends to Costco’s food courts, optical centers, and pharmacies, although the pharmacies remain closed on Sundays.
Competitive Edge
Costco’s CEO, Ron Vachris, introduced the “Executive Member Shopping Hours” in June to keep pace with competitors like Sam’s Club, which allows Plus Members additional shopping hours. This strategic move is designed to help Executive members bypass the long checkout lines and parking lot congestion typically associated with busy shopping days.
Executive members currently pay $130 annually, and among their benefits are 2% rewards on qualifying purchases up to $1,250. In addition, Costco recently began offering a monthly $10 credit on orders over $150 placed through its same-day service or Instacart.
Membership Trends and Financial Outlook
Costco’s Executive Membership boasts 37.6 million members who enjoy various perks, including cost savings and access to lower-tier Gold Star and Business membership benefits for just $65 per year.
The company reported nearly $3.6 billion in revenue from membership fees within the first three quarters of this fiscal year, significantly contributing to a total of $4.8 billion in revenue for the previous year.
Looking ahead, Costco anticipates expanding its global footprint with plans for 914 warehouses by the end of this fiscal year, including new locations in Sweden, South Korea, and Canada.
The new early shopping hour could encourage existing Gold Star and Business members to upgrade their memberships, but whether the benefits justify the increase in annual fees remains to be seen.
