Costco has made some major changes that have left customers stunned.
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Costco is known for providing exceptional customer service, and offering great deals. Costco’s customer service keeps them coming back. The warehouse retailer, however, hasn’t always made choices that were in line with the needs and wants of its customers. Here are five examples of major changes made by Costco that shocked customers. Costco membership in 20241001010As at 2024, Costco will have 132 million members. 71 million of them are paid members. In the United States the membership renewal rate is 92.7%. Costco is ranked second behind Amazon for most popular membership programs. Costco has 871 locations in total, with 600 of them located in the U.S. The numbers have only increased over the years. While the CEO of this warehouse retailer stood by its decision to maintain things such as the $1.50 combo hot dog, customers were not happy with some changes.
1. Costco is making customers scan their cards at the door
Over time, Costco has tried to clamp down on people who are not members shopping in the store. Recently, Costco has become more strict with card sharing. To check out, you must present your Costco membership card. You cannot scan someone else’s card to get through the check-out line. Costco announced today that members will need to scan their membership card at the entrance to gain entry. Costco announced on its website that membership scanning devices would be installed at the entrance doors of local warehouses in the coming months. “Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner.”
Members will still be able to take guests with them to the store, but they will need to be accompanied by a card-carrying Costco member to gain entry. Costco employees will direct you to the customer service desk if you want to sign up or renew your membership. Costco employee, who posted on Reddit about the new scanners, said that some customers were “irate” over the change. The person who wrote this said that “Members were irate at being inconvenienced by the need to show their membership at the entrance of a MEMBERS-ONLY store.” This is only one of the changes that members will need to adjust to over the next few months.
2. Costco discontinued senior shopping hours
During pandemic’s height, Costco implemented senior-only hours. The retailer would open its doors early to customers 60 years and older at designated times. On Tuesdays and Thursdays, seniors were allowed to shop in the hour prior to the store opening (from 9 am to 10 am) at most stores. It allowed older customers to enter the store without having to deal with large crowds. This was something older people appreciated, as Costco was almost always crowded. In April 2022, the retailer will no longer offer these hours. Some people were upset that these hours had been removed, particularly after the severity of the pandemic among older people.
3. Price Increases at the Food Court
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Costco has changed the prices of food items in the food court several times over the years. The CEO claimed that the hot dog combination would never increase in price, but other items have. In 2022, the price of the Chicken Bake, a customer favorite, increased by $1 from $2.99 to $4.99. Reddit user said, “Inflation has caught up with Chicken Bake.” Others in the thread noted that Costco does its best to keep other items at low prices. Costco also hasn’t changed the price of pumpkin pie and rotisserie poultry over the years. It didn’t stop some people from complaining about the price increases of other items.
4. Gas Policy in Certain States
The Costco gas stations are only for Costco members. Gas prices are cheaper for members. In New Jersey, however, the state filed a lawsuit against the retailer claiming that it was in violation of the law to only provide gas to its members in 2004. Costco sold gas to everyone in New Jersey for a while, but then they went back to the original membership-only policy. At first, people were upset that they couldn’t pull up to the Costco gas stations without a membership.
5. Change in Price for Memberships
To combat inflation and keep prices low, Costco has had to make some adjustments to the cost of membership. The retailer increased the cost of membership in September 2024. Gold Star memberships went up from $60 to $65 Executive membership increased from $120 up to $130. The benefits of the Executive membership have also been increased. You’ll still get 2% off select purchases when you join the Executive membership. The maximum reward for the year has increased from $1,000 to $1250. The price of membership has increased for the first time since 2017. Some members have said that they will no longer shop at Costco because of the increase in price. One person posted on Facebook, “Not renewing-quality of Costco food has deteriorated in the past decades.” Another person also agreed. They will never see another dime of mine.”
Despite the anger from some customers, Costco stood by its decision. Costco said that it has been over seven years since the last increase in general membership fees. Membership fees offset our costs, allowing us to keep prices low.
Costco’s Loyal Customers
Even if some of these things left customers in a state of shock, Costco still has a loyal customer base. Costco shoppers are loyal. To continue to shop at Costco, they will have to accept the changes. In general, most people are accepting of all of these changes. Costco membership and growth have not been affected by these changes. What do you think of some of the Costco changes that have been made? Did you feel initially disappointed? Let us know in the comments.
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