Costco has built one of the strongest customer loyalty machines in retail by consistently doing things that make its members feel like they’re getting a deal – and getting treated well while they’re at it. That includes everything from aggressively low food-court pricing to expanded executive member perks.
In recent years, the company has made several positive changes to improve the member experience.
Costco extended hours for Executive members, implemented longer operating hours for gas stations, and added an extra shopping hour on Saturdays for members across the board.
These changes reinforce a broad message – that a Costco membership is worth paying for and renewing.
As a longtime member, I’ve seen that philosophy play out. I’ve been shopping at Costco for 20 years, and a big part of the reason I keep paying those fees is because I get great value out of my membership.
I also appreciate that Costco doesn’t keep things status quo. Whether it’s new benefits or products, the company is constantly making positive changes.
That said, there’s one area where Costco’s decision-making can occasionally frustrate shoppers. I try not to let it get to me, and when you understand the reasoning behind it, you may start to feel the same.
Costco store closures can be a pain point for members
Costco has recently gone out of its way to give members more store access. But occasionally, Costco does the opposite – it closes its doors to members completely.
Costco locations are closed seven days a year for the following holidays:
- New Year’s Day
- Easter
- Memorial Day
- July 4th
- Labor Day
- Thanksgiving Day
- Christmas Day
Naturally, some of these closures coincide with big get-togethers. Losing out on the option to run to Costco for last-minute barbecue supplies, paper plates, or Thanksgiving ingredients is a huge blow to customers.
Related: Costco adds popular item to food court menu
But the reasoning behind the closures is straightforward.
Costco is not trying to leave revenue on the table. Instead, the company prioritizes giving employees time off on major federal holidays so they can spend time with family and avoid the relentless retail schedule that defines much of the industry.
In other words, these closures are less about lost sales and more about maintaining the company’s internal culture – something Costco has long argued is central to its success.
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Why Costco still delivers strong value despite closures
Part of the reason Costco’s limited closures may frustrate some members is that they stand in sharp contrast to many of the company’s competitors, which operate with fewer shutdowns.
For example, Walmart stores typically close only on Thanksgiving and Christmas Day. Target, meanwhile, is open on Memorial Day, as is Kroger, Aldi, and Trader Joe’s.
But closing when its competitors remain open still makes sense for Costco. That’s because the company’s strategy is not built around maximizing store hours. Rather, it’s built around maximizing member value per visit.
Even with fewer operating days, Costco consistently delivers high renewal rates, with membership retention hovering above 92% in the U.S. and Canada. That suggests members are not deterred by occasional closures because the value equation still works heavily in their favor.
From a practical standpoint, the closure schedule is also predictable. Members know in advance when warehouses will be closed, which gives them a chance to pivot.
I, for example, typically do my Costco shopping on Fridays anyway to avoid weekend crowds. Knowing the store is closed for Memorial Day, I can just plan to stick to that schedule.
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Of course, not everyone can hop over to Costco on a weekday, so it’s easy to see why occasional closures might be a pain point for members. But if that’s something that annoys you, do recognize that Costco’s approach to closures reflects a broader philosophy that’s increasingly rare in retail – prioritizing employee well-being even when it comes at the cost of short-term sales.
That’s a trade-off most retailers are unwilling to make, and I can appreciate why Costco does it. If you’re a member who values a great in-store experience and strong customer service, hopefully, you can, too.
Maurie Backman owns shares of Costco.