Costco is stepping up its game when it comes to membership enforcement.
The wholesale giant has announced plans to install automated card scanning devices at the entrance of its warehouses, a move aimed at cracking down on non-members who may be using borrowed or shared membership cards.
These devices are already popping up in several California locations, including Huntington Beach and Inglewood, according to KTLA.
Other states, such as New York, Florida, and Pennsylvania, are also preparing to implement this new system, although specific dates have yet to be confirmed.
Texas locations might see these changes as early as next month.
In addition to the new scanning devices, Costco is introducing stricter rules regarding guest shopping.
Shoppers will now need to be accompanied by a member, effectively ending the practice of parents sending their children to shop at Costco on their behalf.
Moreover, customers will be required to show a photo ID along with their membership card.
Costco’s statement advised members, “If your membership card does not have a photo, please be prepared to show your valid photo ID. We encourage you to stop by the membership counter to have a photo taken to include on your card.”
Previously, walking into a Costco didn’t always mean being stopped for a membership check.
However, the company began tightening its policies last year, instructing employees to spot-check shoppers more rigorously.
Costco explained to Business Insider, “We don’t feel it’s right that non-members receive the same benefits and pricing as our members.”
This new approach now includes showing membership cards with a photo at self-service checkout registers, in addition to the door scanning.
Costco first introduced the scanning system in Washington state, near its headquarters.
The results have been promising, with the company reporting a 29 percent increase in profits, reaching $1.68 billion in the third quarter ending in May 2024.
CEO Ron Vachris, who took the helm on January 1, shared with investors that the new scanning process has significantly improved store efficiency.
He noted, “They’re speeding up our registers significantly when we get all the scanning and memberships verified at the front door.”
Costco’s crowded parking lots are a well-known issue, often exacerbated by the presence of in-store gas stations.
Vachris believes that the new scanning system will help alleviate these problems by turning over parking spaces more quickly.
This, in turn, could potentially allow for gas station expansions where needed.
Last year, hundreds of people took to Reddit to voice their frustrations with Costco parking lots, describing them as chaotic, even on a good day.
One commenter summed it up, saying, “Costco does a lot of things right, parking lots aren’t one of them.”
Despite a strong financial performance, including nearly $58 billion in revenue for the third quarter, Costco announced in July that it would be raising its membership fees by September.
This will be the first increase since June 2017, with the standard membership fee going up by $5, from $60 to $65 annually.
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