COSTCO has promised continued deals through a hidden membership opportunity shoppers might not know about.
The exclusive offering was recently highlighted by the warehouse retailer’s CEO, Ron Vachris.
GettyCostco members could be getting exclusive perks through a little-known program (stock image)[/caption]
GettyCustomers wouldn’t have to go in-store for deals (stock image)[/caption]
CostcoIt’s all part of the Costco Next marketplace[/caption]
Vachris explained that the “benefits” would come from Costco Next, a direct-to-consumer (DTC) program with discounts just for members that include only merchandise highly reviewed by previous buyers.
It was first introduced in 2017 but later expanded in 2021, per Food & Wine.
Costco Next effectively helps members get connected with its suppliers by purchasing products they want directly through their websites.
They still get the Costco prices, though.
“Costco Next is our marketplace,” Vachris noted during a recent earnings call.
“This is an exclusive Costco member-only marketplace.”
“It’s fully curated by our buyers, so everything that’s on the site has been reviewed by our buyers but is exclusive to Costco members,” he added.
The CEO said Costco made the move to continue improving the connection between it and its members.
“So, we think it’s just going to enhance the relationship we have with our members and give more options for their shopping needs,” he told investors.
While Costco Next remains a smaller portion of the warehouse retailer’s operations, it is growing in popularity.
OUTLOOK BRIGHT
Costco seeks to continue expanding its e-commerce presence along with its in-person shopping experiences, and Costco Next is assisting that goal.
CFO Gary Millerchip said on the call that the marketplace even “achieved record sales over the Thanksgiving, Black Friday, and Cyber Monday sales period” this year.
“To use a baseball analogy, we are very much in the early innings with retail media, but we continue to believe this represents a significant growth opportunity in the future,” Millerchip said.
The CFO also noted that suppliers were happy with the recent results of Costco Next.
Costco membership sharing guidelines
Costco has strict rules for membership use that shoppers must follow and they’ve been cracking down on offenders in recent years.
Primary Member Use: Only the primary cardholder can use this Costco membership card. Sharing it for purchases is not allowed as the photo on the card must match the person using it.
Household Card: Each primary member can add one free household cardholder who lives at the same address. This person will receive their own membership card and can shop at Costco independently.
Guest Policy: Members can bring up to two guests per visit to Costco. However, only the member can make purchases. Guests must be accompanied by the member.
Authorized Cardholder: For an additional fee, you can add an authorized cardholder, such as a family member or friend, who doesn’t reside at your address. They will receive their own card and can shop independently.
Credit: Costco
“Our retail media team is now working with over 25 suppliers who are eager to participate in our next wave of offsite campaigns,” he said.
VERIFICATION REQUIRED
The positive outlook for Costco Next comes after the warehouse retailer faced some significant backlash over its membership-sharing crackdown in recent months.
A new policy implemented earlier this summer has members stop at the entrance to scan their cards and have them matched with a photograph and government-issued ID to enter.
Some members have claimed the new measure has caused long lines outside the front doors.
“A line of 40 people was standing outside in 30-degree weather in East Peoria [Illinois],” someone wrote in a post on X this month.
“Unacceptable service. May consider dropping for Sam’s Club.”
Others claimed the policy left them feeling “harassed” and demanded Costco make changes.
The membership verification is required at checkout as well, leaving one customer crying that it was “too much.”
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.”
https://www.the-sun.com/money/13089450/costco-next-perk-hidden-member-benefits-ceo/