Costco is sick of memberships being shared around. And like Netflix, it's taking action. Soon, Costco members will be required to scan their membership cards before entering all stores, while guests will only be permitted inside with a valid member, Axios reports. "If someone tries to enter a Costco store with an inactive or expired membership, attendants will be stationed at the front entrance and ask people to renew their account," while "people who have a membership card without a photo on it may be asked to show a valid photo ID," per KING.
In the past, Costco shoppers have flashed membership cards upon entering, then scanned them at checkout. But Costco started cracking down on card sharing last year, asking more shoppers to show membership cards with their photos. The third-largest US retailer by sales volume also installed card scanners at the entrances of some locations—including near its corporate headquarters in Issaquah, Washington—to check for valid memberships. At the time, Costco said it had noticed more shoppers using memberships that weren't theirs, per Business Insider.
The retailer now says it will expand the scanning initiative "over the coming months." Axios reports the goal is "to convert freeloaders into paying members," which worked for Netflix. In the last fiscal year, more than half of Costco's operating income came from membership fees. Some 74.5 million members paid nearly $4.6 billion combined. The changes come amid the first hike in membership fees in seven years. Beginning Sept. 1, Costco's basic Gold Star membership will cost $65 annually, up from $60, while the premium Executive membership will cost $130, up from $120. (More Costco stories.)
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