Costco’s new membership policy, which has sparked controversy, will finally be strictly implemented, and some consumers may be turned away if they fail to qualify.
Starting September 1, Executive Members alone will be permitted to shop during Costco’s special morning window of 9 a.m. to 10 a.m. local time daily, except on Saturdays when the privilege shuts off at 9:30 a.m. The modification was initially reported in June and became effective from June 30, but a grace period was instituted until August to allow for customer adaptation.
During grace, all members – including Gold Star and Business Memberships – were still being admitted prior to 10 a.m. Some even posted signs indicating temporary allowance. But beginning this month, Costco employees will start enforcing the rule strictly, so only Executive Members, who pay $130 a year, will be permitted to enter during the early hour.
The new policy has sparked backlash from some customers who feel the chain is prioritizing higher-paying members while cutting off shopping access for others. In particular, shoppers at Costco locations that traditionally opened at 9 a.m. now lose an hour of shopping time unless they upgrade their membership. Critics have called the change “alienating” and “punishing” for loyal customers unwilling or unable to pay the higher fee.
Costco justified the move in an internal memo, stating, “Our Executive Members are our most loyal members, and we want to reward them for their commitment to Costco.”
A Gold Star Membership currently costs $65 a year, but Executive Membership is twice at $130. Even though they make up fewer than half of Costco members overall, Executive Members generate some 73% of the retailer’s sales, Business Insider reports. Along with the new early entry benefit, Executive Members enjoy several other advantages, such as an annual reward of 2% on eligible purchases and, as of June 30, a $10 monthly credit towards same-day online or Instacart orders of $150 or more.
Costco remained silent for public comment when announcing the new rule, but web postings indicate that consumers are still polarized. While some appreciate the benefit as a just reward for executive members, others believe it demeans Costco’s image as a store dedicated to equal value and access.
With the grace period now over, Business Members and Gold Star will have to wait until 10 a.m. to shop, unless they choose to pay for an upgraded membership.
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