Costco to implement new membership scanning system in September. The cost of membership is also expected to rise.


August 14, 2024 Tags:

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.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

World Economic Forum Chairman Klaus Schwab Retires After 50 Years of Global Leadership

Klaus Schwab, the 87-year-old founder of the World Economic Forum (WEF), has stepped down as chairman. After leading the influential....

China Returns $55m Boeing Jet as Trump Tariffs Impact Trade

A Boeing 737 MAX originally bound for China’s Xiamen Airlines made an unexpected return to the US on Sunday. The....

China-U.S. Tariff War Rattles Trade Ties and Businesses

Chinese exporters are on edge as a sweeping tariff war with the United States threatens long-standing trade relationships. What started....

Trump’s Commerce Chief Says, Electronics Tariff Exemption Is Temporary

The U.S. government’s decision to temporarily exempt electronics like smartphones and laptops from tariffs may not offer lasting relief. The....

Hudson’s Bay Insider Bid Protocol Raises Sale Speculation

Hudson’s Bay Company (HBC) has taken a significant step in its ongoing creditor protection process. A new internal protocol shared....

Prada to Acquire Rival Fashion House Versace in €1.25 Billion Deal

In a major move reshaping the global luxury fashion landscape, Prada Group has officially announced its acquisition of Italian fashion....

Biggest Drop in Gas Prices Across Canada: What’s Behind the Relief?

Canadians have been noticing a welcome change at the gas pumps. Over the past few weeks, fuel prices have fallen....

Trump Pauses Reciprocal Tariff for 90 Days, Hits China Harder with 125%

President Donald Trump has announced a temporary relief in his sweeping tariff policy, pausing higher levies for 90 days on....

Wall Street Fears Another ‘Black Monday’ Amid Trump’s Tariff Shock

U.S. stock futures plunged Sunday evening, triggering fears of a repeat of Black Monday, as markets reacted sharply to President....

In Canadian Business This Week: Key Events to Watch

As Canada steps into a new business week, several developments are set to shape the national economic narrative. From politics....

Ontario Businesses Fined for Hiring 700 Unauthorized Foreign Workers

A major federal investigation has resulted in significant penalties for three Ontario-based businesses that were found guilty of employing hundreds....

Markets Brace for Turbulence and Recession Fears as Liberation Day Approaches

Investors are on edge as Liberation Day, set for April 2, nears. As the year's first quarter ends on a....