Sponsored By

Costco puts an end to membership sharing in self-checkout line

Shoppers now have to show a driver’s license; membership fees generate billions in profit

Bill Wilson, Senior editor at Supermarket News

June 28, 2023

2 Min Read
Costco_warehouse_club-banner_0_0_0_0_0.png
To curb the amount of membership card sharing, Costco has decided to put the same policy in the self-checkout line that is used in the regular checkout line.Getty Images

Self-checkout at Costco is now going to require identification.

To curb the amount of membership card sharing, Costco has decided to put the same policy in the self-checkout line that is used in the regular checkout line — all shoppers must provide a driver’s license along with their membership card if they want to purchase items, reports CNN. 

Cracking down on membership sharing has been making news lately. Last month, Netflix announced it would be putting walls in place to prevent users from sharing subscriptions.

It’s perhaps not surprising that Costco is following suit, as membership fees make up a large part of the company’s business and are the reason behind why the warehouse giant can carry some of the lowest prices in the marketplace. Costco made $4.2 billion in membership fees last year, posting a 93% renewal rate.

The company also has one of the largest membership groups in the world — 66,000 paid and 119,000 cardholders — and has not increased its fees since 2017. However, Costco has been taking a hard looking at raising the cost of membership over the last few months.

“We don’t feel it’s right that non-members receive the same benefits and pricing as our members,” according to a spokesperson from Costco. The company also claims that requiring proof of membership cuts down on shoplifting.

Related:Costco chief financial officer sees signs of a recession

Cracking down on account sharing is working for Netflix. The streaming service estimated that, prior to its policy shift,more than 100 million households shared an account globally — whereas, Netflix added 100,000 new accounts on both May 26 and May 27, which is shortly after the subscription sharing policy shifted, according to CNN. In the following days, Netflix saw a 100% increase in sign-ups from the prior 60-day average.

 

Read more about:

Costco

About the Author

Bill Wilson

Senior editor at Supermarket News

Bill Wilson is the senior editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like