Costco sees shift in member behavior | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

While there’s plenty to love about shopping at Costco, there’s one element that many members truly dislike – the crowds.

If you’ve ever been bashed in the heel by an oversized Costco shopping cart, you know just how painful an experience that can be.

And if you’ve ever had to wait in a seemingly never-ending checkout line on a Saturday or Sunday, you’ve no doubt had that internal conversation where you pledge to never visit Costco on a weekend again – only to remind yourself you often don’t have a choice.

The truth is that a stressful shopping experience isn’t just bad for members who are going through it – it’s bad for Costco.

During Costco’s last fiscal quarter, the company reported membership fee income of $1.72 billion — a 14% year-over-year increase.

Costco loves membership fee income because it’s effectively free money. But Costco also knows it needs to keep members happy so they continue to renew every year.

The good news is that a major shift in behavior among Costco members indicates a better all-around shopping experience.

Costco membership fee income has risen year over year.

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Costco’s big change in operating hours is benefiting everyone

When Costco announced several months ago that it would open its doors to Executive members early, that decision was met with some backlash.

Gold Star members argued that it made them feel like second-class citizens. Costco employees, meanwhile, felt that it would cause them undue stress, since it would mean needing to have merchandise ready and accessible earlier in the day.

But so far, it seems as though Costco’s decision has done a lot more good than harm.

For one thing, Costco attributed much of its recent financial success to its new warehouse club schedule. And data from Placer.ai show that Costco’s new opening hours have created a more positive shopping experience for all members.

Placer.ai’s report found that between July and October 2025, after early store openings began, Costco’s traffic at peak times was reduced compared to 2024.

Specifically, since the new hours took effect:

The number of Costco visits lasting 30 to 45 minutes increased.
The number of Costco visits lasting 45 to 60 minutes decreased.

This indicates that with fewer crowds to contend with, Costco members are able to shop more efficiently.

Costco will need to keep a close eye on member shopping patterns

Costco knew it was taking a risk by adding early store hours only for Executive members. But it makes sense for Costco to reward those customers who pay the most for store access.

Costco Executive members account for about 74% of the store’s sales, the company said recently. So it pays to make the in-store experience as pleasant for them as possible.

The problem, of course, is that if this change inspires more members to upgrade (which is ultimately Costco’s goal), it could negate the benefit of those early store hours.

At that point, though, Costco could simply pivot and find new ways to entice members to keep paying. The company might also consider a “Super Executive” tier if push comes to shove.

But all told, Costco is doing a great job of retaining members and making strategic decisions to benefit them.

“Costco has demonstrated a value proposition for its members in 2025 that has cemented brand loyalty and shifted the kinetic away from superstores and towards warehouse clubs,” Elizabeth Lafontaine, director of research at Placer.ai, told The Street.

“Costco is now viewed by its members as a true one-stop shop and a retailer that puts shoppers’ needs at the center of its decision making.”

In addition to changing its operating hours, Costco is working to increase its line of Kirkland Signature products to keep prices as low as possible. CFO Gary Millerchip confirmed that the company is “leaning into KS items and increasing domestically sourced goods.”

Maurie Backman owns shares of Costco.