Costco to implement new membership scanning system in September. The cost of membership is also expected to rise.
Costco Wholesale is currently testing new membership card scanners at the entrances of several of its stores across Canada.
The trial is taking place at locations in Ottawa, Edmonton, Regina, and the B.C. Lower Mainland. Costco, which requires shoppers to pay an annual membership fee and present their membership cards when shopping, has introduced these scanners at the entrances of its warehouses. Customers now need to scan their membership cards before entering, and guests must be accompanied by a valid member.
Liza Amlani, co-founder of the Retail Strategy Group, believes this move is logical since Costco's revenue is significantly driven by membership fees. She suggests that the company may be attempting to curb what CNN has termed "membership moochers," or non-members using someone else's card to gain access to the store.
Amlani doesn't anticipate significant pushback from genuine members regarding this change. "I don’t see this being an issue for those who have paid for their membership," she commented. However, she thinks Costco could improve its communication about the new scanners. "This measure is really about protecting their paying members," Amlani noted. She emphasized that Costco should highlight how this change benefits their loyal customers.
Previously, a Costco employee would manually check membership cards at the entrance. Now, while the scanners are in place, an attendant will still be available at the door to assist customers and answer any questions. Amlani sees this as a positive step, ensuring that there is still a personal touch in the interaction, which can help ease any potential frustrations with the new technology.
Costco has also announced a membership fee increase starting this fall. Individual, business, or business add-on memberships will rise by $5 annually, while executive memberships will see a $10 increase. The company operates over 100 stores across Canada.
