2 days ago
Costco rolls out new perk to help shoppers beat crowds… but there's a catch
Costco is introducing a new perk that will allow certain members to have their own private shopping hours.
Executive tier members will be able to shop for an hour earlier than regular Gold Star members from June 30.
The big box retailer will now allow its top tier members, who pay $130 a year, to shop from 9am to 10am on weekdays and Sundays, and 9am to 9:30am on Saturdays.
'Our Executive Members are our most loyal members, and we want to reward them for their commitment to Costco,' the company told employees in an email seen by Business Insider.
The retail giant said that the top tier members would also start receiving a $10 monthly credit for Instacart orders, as well as $150 worth of other benefits and savings on Costco services.
Around half of Costco shoppers have Executive level memberships, but they account for 73 percent of sales, according to the company.
The top level also offers a 2 percent rebate on all Costco purchases made that year up to a total of $750.
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.
As well as access to discounted groceries and electronics, Costco membership also gives shoppers access to services such as hearing tests and home insurance.
It is not yet clear whether the new shopping times will include these extra services.
It comes after Costco also expanded its gas station hours and added more pumps.
The retailer's gas stations are now open from 6am until 10pm on weekdays.
On Saturday and Sunday, Costco gas stations now open at 6am and close at 8:30pm and 7:30pm, respectively.
The wholesale giant originally closed it 60 gas stations at 9pm but decided to extend its hours further, much to the delight of its loyal customers.
Costco members are delighted that gas stations are now open an hour later
Costco has built a reputation for consistently offering gas prices below market averages, leading to the familiar sight of vehicle queues at Costco pumps across the country.
Fuel sales made up around 12 percent of the Costco's total sales last year, and its cheap gas and accessible stations are a key incentive for memberships.
Costco hiked its membership rates back in September last year, taking its standard Gold level membership from $60 to $65 and its Executive level by $10 to $130 a year.
It was the first time the retailer had upped its membership fees since June 2017.
The retail giant currently has around 52 million members in the US and Canada.
