How is Costco cracking down on membership? What Arizonans need to know

The warehouse chain Costco is following in the footsteps of Netflix as it begins to crack down on membership sharing.

The company announced that it's not changing its membership policy, but it is enforcing it more strictly.

The annual membership allows you to go into any Costco warehouse and have access to exclusive pricing at checkout.

Costco workers ask customers to show their membership cards when they get to the register to check out. However, the retailer has reportedly seen an uptick in more nonmembers shopping with other people’s cards. This has been the case, especially at self-checkout, according to a statement from Costco.

“Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us,” the company statement said. “We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members.”

How is Costco cracking down on membership?

Costco workers will be enforcing membership rules more heavily at warehouse locations.

This will likely look like being asked for your membership card at checkout, especially at self-checkout. If your membership card does not have a photo on it, you may be asked to show a photo ID.

How many Costco locations are in Arizona?

There are nearly 900 warehouses that Costco operates across the globe, half of them are based in the United States. There are 20 Costco locations across Arizona, with the latest opening in Buckeye. As of May 2023, the company has 124.7 million cardholders and 69.1 million households.

According to Costco’s 2022 annual report, about 93% of members in the U.S. and Canada renewed their membership and 90% across the globe, generating approximately $4.2 billion in revenue for the company.

The company hasn’t raised the cost of its membership since 2017, unlike its competitors, though it has hinted at it. Rivals such as Amazon and Sam’s Club have raised their membership fees since then.

How much is a Costco membership?

Costco offers three different memberships: Gold Star, Business, and Executive. The Gold and Business class memberships both cost $60 while the Executive costs $120.

All of the memberships allow you to get into all Costco locations worldwide.

The difference between the Gold Star and Business compared to the Executive is in an annual rewards rate on qualified Costco purchases, additional benefits and saving on Costco services, as well as extra benefits on Costco travel products.

You can find more details on each type of membership on the Costco website.

Can other people use my Costco membership card?

The membership is exclusive to the person Costco has on record as the cardholder. However, the cardholder can bring up to two guests at a time into the warehouse, according to their customer service page.

Purchasing items is where people may be confused. As members are the only people who have the ability to purchase items.

How many people can be on my Costco membership?

Costco's customer service page lists that there can only be two members from each household on a single membership.

The free household member will need to be someone over 16 years old and live at the same address as the primary member.

How do I sign up for Costco membership?

There are various ways for someone to become a member.

You have the choice of going in person to your nearest warehouse and going to the membership desk, you can call 1-800-774-2678 to speak with someone in Member Services, or you can sign up using the Costco website.

Can I shop at Costco without a membership?

Nonmembers are not able to purchase items at Costco warehouses. There are currently no free membership options.

Have a question you need answered? Reach the reporter at rromeroruiz@gannett.com. Follow him on Twitter @raphaeldelag.

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This article originally appeared on Arizona Republic: How is Costco cracking down on membership? What Arizonans need to know