Costco crackdown: Retailer to push back against membership sharing

Costco is the latest company to announce a crackdown on membership rules to help improve its bottom line.

The retailer said it was not changing any membership rules. Instead, it will start to crackdown on the enforcement of current rules.

Right now, around 69 million households have an annual membership to Costco. The entry level membership allows the cardholder to bring one additional person, who lives at the same home address, with them to shop in the store.

“Those Costco memberships equal revenue and profit for Costco the retailer, so when that membership gets shared, Costco ends up losing money and losing profits,” retail analyst Hitha Herzog said.

Costco requires shoppers to show their ID cards before entering the store and when checking out. The ID cards have a photograph of the cardholder on them.

However, some shoppers were able to borrow someone else’s membership card and use the self checkout counter to purchase items without getting caught.

Costco is reportedly now doing spot checks at the self checkout counters to discourage non-members.

The retail giant released the following statement about the situation:

“Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses…We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members.”

Costco is just the latest membership-based company to crackdown on enforcing membership rules. Most notably, Netflix recently cracked down on people sharing their passwords with anyone living at a different address.

Related Posts

Julia Roberts’ daughter Hazel is growing up fast and looks just like her mother

A celebrity we hardly ever hear from is Julia Roberts. Fans know nothing about her personal life. Despite her being an Oscar-winning actress who has appeared in…

After discovering a room full of snakes and realizing they must be guarding something, a man calls the police.

A daring rescue operation has uncovered a perplexing mystery revolving around an abandoned building, a room teeming with snakes, and an unwitting protagonist named Dan. Here’s the…

A distressed woman confided in her grandmother, who had an excellent response to the news that her husband had cheated on her.

It’s important to be able to talk to the people we care about about the challenges we’re facing in life so that we don’t have to go…

Roseanne Barr Turns 70 — She Is Slimmer, Has Bigger Family & Is ‘Feeling Good’ with Beloved Man of 20 Years

Roseanne Barr was fired from her sitcom because of a racist tweet. The actress found love again and bought a house in Hawaii with her life partner….

Kate Middleton’s Cancer Diagnosis: Revealing the Shocking News

Last week, much to the surprise of her close friends, Kate Middleton shared the news about her cancer diagnosis. While she confided in a small group of…

Stray cat refuses to eat unless she gets food in a bag

A mother’s love for her child is stronger than anything else. Often, a mom will go without so that her children can get what they need. It…

Leave a Reply

Your email address will not be published. Required fields are marked *