Costco Executive members notice major early shopping problem
When Costco announced earlier this year that it would reintroduce early shopping hours for Executive members, reactions were mixed.
Some retail professionals and members applauded Costco for rewarding Executive members with extra perks. Others pointed out that Costco’s policies were elitist and that treating ordinary Gold Star members as second-class citizens would only harm the company’s business model.
Costco workers also took to the internet to complain about the strain early work hours could put on them.
“We can barely open as is,” one employee complained. Reddit thread.
“I’ll be there at 4am,” another wrote. “This is going to be a bad thing for us stockers and forklift drivers to have to be there at 3am. It means I have to get up at 1-1:30 to get to work on time.”
Costco, unlike most retailers, derives the bulk of its revenue from membership fees. So it cannot afford to lose members.
On the other hand, if Costco could convert more Gold Star members to Executive members, it could significantly increase its revenue. So it makes sense for Costco to do this. sweeten the deal for higher level members.
Related: Costco is offering its weirdest membership promotion ever
Moreover, implementing early shopping hours is not the company’s only strategy. Costco recently added an incentive for Executive members who order same-day grocery delivery, offering $10 off orders of $150 or more. this one monthly $10 credit that automatically renews.
While some might argue that opening the store early to select members only wasn’t the best idea on Costco’s part, the company isn’t wrong in rewarding customers who join at the Executive level.
“Early hours add another benefit to the Admin tier of the membership program. Yes, it may cause some confusion (and even irritation), but it may also encourage some people to upgrade to a higher tier,” said Neil Saunders, general manager of GlobalData’s retail division. RetailWire controversy.
Additionally, as Saunders points out, “There is no way the other tiers will lose anything, as opening hours will remain the same as now.”
While it’s nice to shop when the store is empty, Executive members realize there are some drawbacks to reaching Costco as soon as it opens.
First of all, customers who arrive early may be long gone before Costco’s famous free samples show up. But perhaps a bigger problem is that shopping early can lead to longer waits at checkout lines.
Related: Sam’s Club makes bold move to win over Costco members
Recently, Costco Executive members in Central New Jersey noted that when they went to check the register during the store’s early shopping hours, only two or three registers were open, normally at least twice as many registers were open.
