2 weeks Ago By Elizabeta Ranxburgaj
COSTCO is braced for a Netflix style moment as a membership change is rolled out to warehouses, analysts have said. The retailer's introduction of membership card scanners at store entrances has paid off for the chain and for its customers. Costco shoppers have infamously needed to sign up to the warehouse chain to be able to benefit from its deals and prices.
The company recently rolled out scanners to check shoppers cards, rather than have an employee do it manually. The technology has not spread to all stores yet but the company has already seen a rise in membership count, following this move. This has meant more non-paying customers have decided to fork out on the chain's $65 basic membership or $130 executive membership annually.
Read more on costco Analysts compared this growth to the surge in new Netflix accounts after the sites crack down on password sharing, according to Fox Business . The streaming site had 9.3 million new members in the first quarter of 2024.
This was a five-time increase compared to the same time in 2023. Costco could also experience similar staggering figures as Morgan Stanley analysts predict four million people could sign up soon. Most read in Money The warehouse chain's CEO Ron Vachris explained this roll out could also improve the shopping experience for customers.
CEO Vachris said: "It gives our operators real-time traffic counts throughout the day. "So, we're able to adjust front-end lines that we need to open and close lines based on the fluctuations of business." He also explained how this change could help speed up people's time at the checkouts.
Vachris added: "It has also taken the friction of membership verification away from the front-end registers and moved that to the front door, where we're able to look at people's membership status." The retail boss explained this technology would also be able to notify people when their renewals are due before they go to checkout. Costco has unveiled membership scanners at its store entrances.
In August 2024, the retailer released a statement about the scanners on its website . "Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse," it wrote. "Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner.
"Guests must also be accompanied by a valid member for entry. "If you have any questions or concerns, there will always be an attendant at the door to assist you! "If your membership is inactive, expired, or you would like to sign up for a new membership, the attendant will ask that you stop by the membership counter prior to entering the warehouse to shop. "Additionally, if your membership card does not have a photo, please be prepared to show your valid photo ID.
"We encourage you to stop by the membership counter to have a photo taken to have on your card." He said: "The membership card scanners installed at the front doors have delivered on the goal of speeding up the checkout process. "This has been very well received by our members.
" The scanner roll out has not been the only change to recently hit Costco shoppers. Read More on The US Sun Costco increased its annual membership fee for the first time in seven years in September. The chain's Gold Star membership rose from $60 to $65 and its Executive membership jumped from $120 to $130.
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