The exterior of a Costco store in Teterboro, New Jersey, on August 18, 2020.
Kena Betancur | Corbis News | Getty Images
costco Take a page from the Netflix book.
The retailer said Tuesday it was cracking down on people who sneak into its clubs and try to shop with someone else’s loyalty card.
Costco said it always requires shoppers to present their loyalty cards at the checkout line during checkout. It also now requires viewing a photo card at self-checkouts and photo ID if shoppers don’t have a photo on their loyalty card.
“We don’t think it’s right that non-members receive the same benefits and prices as members,” the company said in a statement.
The membership-only storage club said it has noticed increased card-sharing abuse since expanding self-checkout to more stores.
It was previously reported that the strengthening of law enforcement Dallas Morning News.
Costco sets itself apart from other retailers because of its business model. Most of its revenue comes from membership fees, which help cover company expenses and keep prices low. Its annual membership fee is $60, and its higher-level plan (called “Executive Membership”) is $120 per year.
The membership-only warehouse club has attracted more customers and won more wallets over the past three years. Shoppers who turned to clubs to stock pantries with toilet paper and hand sanitizer during the coronavirus pandemic are now going there to buy cheaper gas and bulk groceries in times of inflation.
walmart-Its Sam’s Club business has seen similar growth. Its membership hit a record high.
However, even clubs are feeling the pinch as consumers cut back on spending due to inflation, or spend money on experiences such as travel and dining out. For the past two quarters, Costco has reported higher food sales as demand for higher-priced items and popular categories like furniture slowed. electronic product.
Adjusting for the impact of inflation, its net sales rose approximately 2% year-over-year to $52.6 billion Quarter ended May 7.
Costco Chief Financial Officer Richard Galanti said on an earnings call in December: “During these difficult times, we all face enormous hardship, especially with higher-priced non- necessity.”
Costco shares have risen nearly 16% so far this year, outperforming the S&P 500’s gain of about 14%. The stock closed at $523.42 on Monday.