Estimated reading time: 2-3 minutes
NEW YORK — Some shoppers are buying Costco’s $4.99 rotisserie chickens and cashing themselves a check. The problem is: not all members.
Since Costco expanded self-checkout, the company noticed that non-members were sneaking in to use membership cards that weren’t theirs. The Warehouse Club retailer is now asking shoppers for their membership cards along with photo ID to use self-checkout registers — just like standard checkout lanes.
“We do not believe it is fair that non-members receive the same benefits and pricing as our members,” Costco said in a statement.
Costco has nearly 120 million members, making it one of the largest membership clubs in the world. Costco members pay $60 annually for a regular membership or $120 for an Executive Card to purchase Clubs.
This membership model is critical to Costco’s business, as fees help boost the company’s profits and offset costs. The company hasn’t raised membership costs since 2017, even as rivals like Amazon and Sam’s Club have raised membership fees.
Any changes to Membership Promotions may harm Costco.
“Growing our membership base, expanding our executive membership and maintaining high renewal rates will impact our profitability,” Costco said in its annual filings.
Netflix has also recently cracked down on members who share passwords.
The streaming giant previously turned a blind eye to password sharing because it was fueling growth, but all the non-paying members were hurting Netflix’s bottom line. Previously, it was estimated that more than 100 million households worldwide share an account.
Early results suggest Netflix’s new policy is paying off. In the year The streaming service saw its biggest jump in new subscriber sign-ups since the early days of the Covid-19 pandemic in 2020 as people increasingly stayed at home on the platform.
Related stories
The most recent business stories
More stories you might want
[ad_2]