Costco Wholesale Corporation has announced a significant enhancement to its Executive Membership program, which represents a substantial portion of the retailer’s sales. In a recent earnings call on May 29, incoming CEO Ron Vachris delivered some great news. Costco recently gave its Executive Members earlier access to Costco warehouses at 9 a.m., one hour earlier than the regular opening time for Gold Star members. This conversion is expected to have a positive impact on the shopping experience of nearly 37.6 million Executive Members. These active members account for 73% of Costco’s total sales volume.
The cost of their Executive Membership is $130 annually. Along with its additional perks, it can be a worthwhile investment for those that shop there often. Members invest an average of $3,250 per year into their memberships. Most will find that the benefits they enjoy in return will more than compensate for this expense. Costco’s new early access program comes on the heels of a successful expansion of gas station operating hours across Costco’s North American locations. That meant the extension was put into place a mere three months before the announcement itself.
Vachris noted the positive customer response to the changes in gas station operations, stating, “The combination of expanded gas station hours, new gas station openings and lower prices at the pump have led us to having two of our all-time highest gallon weeks in the U.S. during the last month.” This response speaks to Costco’s dedication to improving customer experience and meeting the evolving needs of their shoppers.
The timing of the announcement is strategic, occurring just over a week after the earnings call, reinforcing Costco’s focus on creating value for its Executive Members. This new benefit has potential to reach a membership base of 79.6 million. It’s meant to help them build customer loyalty and increase sales.
Executive Members will get an additional hour of exclusivity in-store before other Members are permitted inside. This early access should help reduce congestion in stores during the heaviest shopping hours, improving the overall shopping experience.