Costco has never been a company that shies away from bold changes, but a wave of policy shifts rolled out between 2024 and 2025 has the retailer’s massive membership base more divided than ever. From door scanners cracking down on card sharing to exclusive early shopping hours reserved for top-tier members, the warehouse giant has been drawing sharp reactions from shoppers all across the country. Some say the changes are long overdue and fair. Others feel squeezed out of a club they thought they already belonged to.
The Card-Scanning Crackdown That Changed Everything
In August 2024, Costco announced plans to begin using scanning devices at the entrance of all of its locations, to be implemented in the “coming months.” Members with active memberships now have to scan their physical or digital cards at a machine at the store’s entrance, and those with cards without a photo must show a valid photo ID. Guests can only enter a Costco store when accompanied by an active member. This was a significant departure from what had been a fairly relaxed check-in process for decades.
Previously, a non-member could browse the store, though they couldn’t make purchases unless they showed a card at checkout. The old system made it too easy for non-members to borrow a member’s card, and eliminating membership sharing was another reason for the change. Costco finance chief Richard Galanti acknowledged that more people had been sharing memberships since the pandemic in 2020. The new system essentially closes the door on that practice entirely, and not all shoppers are pleased about the added friction at entry.
Membership Fees Go Up for the First Time in Seven Years
Beginning on September 1, 2024, Gold Star and Business members saw their annual membership fee rise from $60 to $65, while Executive cardholders had their yearly fee jump from $120 to $130. This was a seemingly long overdue fee increase, with the last one having occurred in 2017. For many longtime shoppers, the back-to-back changes – new scanning requirements and a price hike in the same year – felt like a lot to absorb at once.
In fiscal 2024, Costco’s membership fee revenue reached $4.8 billion, accounting for about 65% of the company’s net income for the year. By 2025, Costco membership fees totaled $5.323 billion, up 10.3% from 2024. Those numbers tell a clear story: the fee hike did not drive members away. Despite the grumbling, loyalty remained remarkably strong, which gave Costco confidence to push forward with even more changes.
Early Shopping Hours Create a Two-Tier System
The third and easily most polarizing perk Costco bestowed on its Executive cardholders is special shopping hours. Beginning September 2, 2025, Executive members can shop in Costco’s stores exclusively from 9 a.m. to 10 a.m. on weekdays and Sundays, and from 9 a.m. to 9:30 a.m. on Saturdays. Costco first rolled out the change on June 30, allowing a short grace period before officially enforcing it on September 1. Signs were posted at store entrances explicitly stating that Gold Star and Business members would be turned away during those exclusive windows.
While Costco’s recent changes have been positive ones for Executive members, not everyone is happy about them. Some Gold Star members have complained about being treated as second-class citizens, while Costco employees have moaned that early store hours place an unwanted burden on those working during those periods. Many feel it is unfair and creates a two-tier system, giving special treatment to higher-paying members. The debate spread quickly across social media, Reddit forums, and news comment sections.
The Financial Logic Behind the Push to Upgrade
Half of Costco’s U.S. members pay for Executive status, and they’re responsible for 73% of the warehouse giant’s sales, according to Costco data. As of the end of its fiscal first quarter for 2026 (November 23, 2025), Costco had 81.4 million paying members worldwide, 39.7 million of which were Executive cardholders. That growth in Executive memberships didn’t happen by accident – Costco has been systematically stacking perks to entice upgrades.
A LendingTree analysis found that bulk purchases can reduce costs by an average of 27% across 30 everyday products, including essentials such as paper towels, bottled water, and batteries. Costco’s Executive Members also get 2% back on most purchases for up to $1,000 a year, meaning shoppers need to spend at least $3,000 annually – about $250 a month – just to break even on an Executive Membership compared to a standard membership. For regular Costco shoppers, that’s often a reasonable threshold, but it leaves casual visitors feeling the deal doesn’t add up for them.
The Food Court Battle: Members Only
As early as 2020, some Costco locations started posting signs that food courts were for members only. In 2024, Costco started officially cracking down on food court access for non-members. In March 2024, Costco’s chief financial officer Richard Galanti announced that customers would no longer be able to purchase items at the company’s outdoor food courts without proof of membership, noting: “One of the challenges is that some of the food courts have gotten so busy, particularly if it’s near some office buildings or construction sites. We were getting member complaints.”
By denying non-members food court access, Costco strengthens the case to keep paying $65 a year for a Gold Star membership or $130 a year for an Executive membership. Crowds have long been a huge problem at Costco. Costco’s decision may push consumers looking to join a warehouse club toward its biggest competitor – Sam’s Club. Unlike Costco, Sam’s Club does allow non-members to eat at its cafes. That competitive dynamic is one the company is watching very carefully.
Renewal Rates Stay High, but Uncertainty Looms
Loyalists of the Issaquah-based retailer were not dissuaded: 68.3 million people held individual memberships by the end of fiscal 2025, an upsurge from 63.7 million in 2024 and 58.8 million in 2023, according to Costco’s annual report. Costco boasted a membership renewal rate in the U.S. of about 92% and a global renewal rate of around 90% at the end of fiscal 2025. For a company making this many changes in a short time, those numbers are nothing short of remarkable.
Over half of new members are under 40 years of age, a significant younger shift in the company’s traditional, more mature demographic. Still, at the end of fiscal year 2025, business looked good for the retailer: net sales jumped 8%, and membership fee revenue climbed 10%, due to new sign-ups and fee increases. CEO Ron Vachris noted in quarterly conference calls that the new shopping hours for top-tier members had a positive impact on sales. Whether the changes go too far ultimately depends on which side of the membership tier you’re standing on.
