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Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

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RetailCostco

Costco members will soon have to scan membership cards upon entrance

By
Chris Morris
Chris Morris
Former Contributing Writer
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By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
August 7, 2024, 11:51 AM ET
Sneaking into Costco is about to be even harder.
Sneaking into Costco is about to be even harder. Justin Sullivan/Getty Images

Costco’s crackdown on membership-sharing is taking things to the next level. The retailer has announced plans to add card scanners at the entrances of its warehouse stores in the coming months, with members required to scan in before they start shopping.

Don’t have a card or using an expired membership to get a cheap rotisserie chicken? An employee at the door will steer you to the customer-service desk so you can sign up or renew your account. And all guests will need to be accompanied by a valid member.

“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse,” the company said on its customer service website. “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.”

The only exceptions to the entry rule are people who are visiting the pharmacy or who have an appointment with an in-house optometrist (though you’ll need a membership if you plan to purchase glasses or contacts there).

Costco began experimenting with card scanners (instead of the long-standing practice of just flashing a card at the store employee on duty) in January. A post on Reddit at the time noted that once members scanned their card, a display would show the face on file for the employee to check. If the cardholder was obviously not the member, they could be turned away.

The use of the facial scanners did not replace the photo ID verification at check-out at those locations testing them.

Costco has been adamant about cracking down on membership-sharing, saying in a statement to media last June: “We don’t feel it’s right that non-members receive the same benefits and pricing as our members. Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us.”

Last month, Costco announced it was increasing the price of membership by $5, raising the price of a basic Gold Star card to $65 per year.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

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