PRESIDENT and CEO of Costco Ron Vachris addressed the reasoning behind the new membership card checks at the front door.
The checks have been a point of frustration among shoppers since the retailer began to crack down on membership sharing.
During Costco Wholesale’s Q4 2024 earnings call, Vachris said that the card readers offer “several different benefits,” contributing to smoother store management and a more efficient customer experience.
Vachris explained that the card readers, which have been in use across Europe for two years and piloted in the US for the last six months, serve multiple functions.
One of the key advantages is providing Costco with real-time traffic data.
This data allows store operators to make quick adjustments to checkout lines based on fluctuations in customer volume.
“It gives our operators real-time traffic counts throughout the day,” Vachris said on the call.
“We’re able to adjust front-end lines that we need to open and close lines based on the fluctuations of business.”
STAYING FRESH
The data-driven insights also extend to managing fresh food sections, allowing Costco to adjust supply based on the flow of customers.
Vachris stressed that this system helps optimize inventory oversight while improving efficiency in customer service.
Another significant benefit is the shift of membership verification from checkout to the front door.
By checking membership status upon entry, Costco reduces friction at registers, leading to faster and more efficient checkouts.
Customers are also notified if their membership renewal is due before they reach the checkout, which Vachris described as a “healthy front-end improvement in productivity.”
He added, “It has also taken the friction of membership verification away from the front-end registers and moved that to the front door…
“We’ve realized some very nice, healthy front-end improvements in productivity.”
Costco’s membership scanners
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.”
‘I DON’T GET IT’
Despite these advantages, the new system has received mixed reactions from shoppers.
Some have expressed frustration, describing the additional checks as stressful and unnecessary.
The process, while improving efficiency for the company, has left some customers feeling inconvenienced, as they now face another step before entering the store.
“I canceled my membership over this nonsense,” one shopper claimed.
She argued that the retailer treated customers like criminals, while others found it difficult to understand the reasoning behind the new policy.
“I don’t get it. It’s not like people can buy anything once they get to the cashier,” another chimed.
“Costco is the most stressful place in the world,” said someone else.
“It’s like self-checkout and three employees standing around watching you. America has jumped the shark.”
Vachris, however, emphasized during the call that the changes are meant to enhance overall store management and the shopping experience.
