Costco is cracking down on nonmembers entering its warehouses.
The big-box retailer is installing card scanners at store entrances nationwide, several of which were spotted recently around Southern California.
Readers reported using scanners at warehouses in Tustin, Laguna Niguel (Cabot), Aliso Viejo, Irvine, La Habra, Cypress, Signal Hill, San Dimas, Alhambra, Burbank, Sherman Oaks, Santa Clarita, (north) Fontana, Palm Desert, La Quinta, San Bernardino and Victorville. One local reader and Hawaii visitor let us know that the Kahului store on Maui has implemented the scanners as well.
The company on its online customer service page said the scanners would appear over the coming months.
“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,” Costco stated.
In a “we see you” nod to guests entering Costco warehouses while waving someone else’s membership card at the door attendant, the company said it will be matching photos to membership cards. So, if your Costco card or credit card doesn’t have a photo (or that photo is old, smeared or illegible), expect to be asked to show a photo ID as well.
One shopper let us know that the new scanner/photo requirement wasn’t going smoothly in Asuza.
“Worst Costco experience I’ve ever had,” the reader wrote Wednesday. “My picture was no longer visible on my (credit card) so had to wait in a long slow line to get a picture taken.”
This shopper’s advice to Costco was blunt: “If you’re going to implement a new scan/photo requirement, at least have a fully manned station to deal with all the problems it creates.”
Here’s a look at the Costco membership card scanner popping up at warehouse stores across Southern California. This angle is shown from the employee’s perspective. Once a shopper scans their membership card, their face appears on the screen, allowing staff members to match the membership to the person entering the store. The shopper’s face has been blurred to protect their identity. If a photo doesn’t appear, that shopper will be asked to head to another line to have a new photo added to their membership card or Costco credit card. (Photos courtesy of Andrew O’Connor)
A Costco employee provided two photos of the scanner experience. Once a member scans their card, a giant headshot of that member appears on the other side of the scanner, where a Costco employee is typically standing. That employee said he turned away three customers whose faces didn’t match the membership photos that appeared on the scanner’s screen.
Costco has been attempting to halt nonmember usage in other ways. In April, customers reported some food courts were requiring membership cards for purchases.
The company’s chief financial officer told Axios in March that the policy change was meant for locations with outdoor food courts.
So, why is Costco so set on blocking nonmembers? The bulk of the company’s profits come from memberships. Costco, long known for its super-thin sales margins, brought in almost $4.6 billion in membership fees in a year, according to a 2023 article by the Motley Fool. Those fees make up 72% of the company’s profits.
The door scanners come amid several changes at Costco warehouses.
The retailer earlier this month said it was raising membership fees for the first time in seven years. The new fees, taking effect Sept. 1, will raise the price of Costco’s Gold Star membership to $65 from $60 annually. The Executive membership is rising to $130 from $120.
Costco also replaced its popular churro with a 750-calorie chocolate chip cookie, and it switched the rotisserie chicken container with a plastic bag.
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The changes didn’t go smoothly with all customers, some of whom expressed their ire on social media.
“First Costco puts rotisserie chickens hidden in a leaky plastic bag,” Long Beach Daddy commented on X, formerly Twitter. “Now I have to get scanned before entering the store? What’s next? $3 hot dogs and paying 25 cents to borrow a shopping cart?”
Another X user named Green@masterofstink was a bit brazen when they cheered “less leeches in Costco.”
Astute shoppers will note that Costco does allow nonmembers in its stores to use its pharmacy and to buy liquor. California law prohibits membership clubs from excluding the public from alcohol sales, meaning customers can walk in and buy just booze without a Costco card.
Costco, which says it has 128 million cardholders in 73 million households, reports its earnings in September. Analysts expect the retailer to show growth of 3% or more.
If you’ve seen an entrance scanner at your Costco, be sure to tell us by sending an email to sgowen@scng.com
