In 2023, Costco (COST) had $234.2 billion in worldwide sales, which made it the third-largest retailer in the world. Amazon and Walmart beat it with $359.9 billion, and $635.0 billion, respectively.
How did Costco become such a retail behemoth?
Many experts attribute Costco’s success to its more affordable offering in bulk, and a variety of perks and exclusive deals its memberships bring. On top of that, Costco has a careful selection of products, as it typically stocks only about 4,000 different items across an average 140,000 square feet of floor space.
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What’s more, over the last couple of years, its popularity rose, driven by products and sales that have gone viral on social media platforms.
If that isn’t enough, Costco never stops innovating and answering new customers’ demands.
Just recently, it made a bold move to take down Amazon. The retail giant took convenience one step further for those in need of quick delivery, writes TheStreet’s Colette Bennette. Costco will soon be launching its new Priority Delivery option which would allow certain items to be ordered and delivered within 30 minutes.
And now it has revived a feature for executive members only that brings divided opinions.
People shop in a Costco.
Image source: Brooks Kraft LLC/Corbis via Getty Images
Exclusive hours for Executive members only is back
Starting Monday, June 30, Costco Executive members will be able to shop alone, and earlier than other members and customers as stores will be open at 9 a,m. only for them.
Gold Star and Business Members, who spend $65 per year for some privileges must wait until 10 a.m. on weekdays and Sundays, and 9:30 on Saturday to enter and shop.
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Costco previously provided early hours for Executive members, and is now bringing back this perk.
How much to be able to shop at exclusive hours? Executive membership costs about $130 per year.
The revived perk, which resembles the one rival Walmart’s Sam’s club has been offering for a while, is limited to U.S. stores. Some Costco stores already open at 9 a.m. but now that first hour will be reserved for executive members only.
Executive members account for more than 47% of Costco’s pain membership, but represent 73.1% of sales globally, Costco CFO Gary Millerchip said during a third-quarter earnings call.
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The early access option has a goal to add more value to executive members who make the majority of sales, however, some other members felt kind of discriminated against.
Some Costco’s non-executive members feel like ‘peasants’
Many customers made a comparison with Sam’s Club’s early hours and other offerings, saying how the rival provides even earlier shopping, starting at 8 a.m.
Another customer wrote on Facebook, “I remember being like this when I was a kid. We went in super early & they even had donuts… wait never mind it was Sam’s club.”
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Some pointed out how Sam’s Club scan and go on the phone is a way better perk.
Among executive members there were those very pleased with the change, saying that this feature was one of the reasons that made them sign up for executive membership and they were hoping it would get back. Some of them feel that they deserve this kind of “incentive” as they pay more for their membership.
However, not all executive members were thrilled by the news, with some saying they would prefer later closing hours, instead of early opening, and would rather that they have an option of buying gluten free pizza for example.
Another customer, joked saying “Good, us peasants will get an extra hour of sleep.”
Despite the obvious humor in the above post, there is also some truth to it, as many customers expressed the opinion that earlier opening hours should be for all members, regardless of membership.
Costco confirmed a grace period until August 31 for Gold Star and Business members to get used to the change.
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