Costco is giving its members $10 for free... but there's a catch
Costco is giving some members a new perk — a free $10 monthly delivery credit.
The credit can be used toward the retailer's own same-day delivery service or when ordering from Costco via Instacart.
But it is only on qualifying orders of $150 or more. And the new benefit is only for executive members, who pay $130 a year for the premium tier — double the price of a standard $65 gold star membership.
'Our new monthly credit makes it easier than ever for members across North America to get Costco's warehouse items with the convenience of fast and reliable delivery,' said Instacart's chief product officer Daniel Danker.
But not everyone is impressed. Some shoppers took to X to say the $10 credit won't move the needle — especially since Sam's Club has offered a similar perk for more than a decade.
'Costco is still playing catch-up to Sam's in a lot of ways,' one user posted.
Walmart-owned Sam's Club, Costco's biggest rival also recently dropped its membership price to just $20, rolled out a new AI checkout and even undercut Costco's iconic $1.50 hot dog and soda combo.
Retail analysts say these moves have forced Costco to respond.
Instacart's chief product officer Daniel Danker insisted said members will be able to get orders faster and more conveniently
Costco's $10 credit is is one of two perks for executive members starting on June 30. They will also get to start shopping an hour earlier too.
Costco hopes the new shopping hours will reduce traffic in car parks and lines at checkouts, which is a key customer complaint.
However, it is also a move that could boost membership fee revenue, a key driver of Costco's bottom line.
Last year Costco brought in more than $4 billion a year from membership fees alone, after upping its rates in September.
Around half of Costco's 79.6 million shoppers have executive level memberships, but they account for 73 percent of sales.
The top level also offers a two percent rebate on all Costco purchases up to a total of $750 a year
Costco has also expanded its gas station hours and added more pumps.
The retailer's gas stations are now open from 6am until 10pm on weekdays.
The new deal is debuting the same day as Costco's new policy that allows executive members to shop before gold star shoppers
Costco customers have criticized the retailer for recent changes.
There was backlash after the chain announced its plans to switch to Coca-Cola from Pepsi beverages in its food courts.
The company confirmed the change in January and rolled out the first machine at a new California store in March.
Shoppers also claimed on Reddit that the chain hiked its food court prices.
These triggers could potentially be reasons why Costco was beaten by Walmart this year in America's grocery wars.
Costco still managed to have a successful third quarter this year with $61.96 billion, an 8 percent increase compared to last year's results.
Factors that may have contributed to Costco reaching this total include a few food court menu shakeups and its expansion of gas station hours.
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