US-based membership-only wholesale retailer Costco is taking steps to ensure the exclusivity of its shopping experience in Canada. The company has begun testing a new membership verification system at several locations across the country, signalling a shift in how customers access their stores.
The new system, which involves scanners placed at store entrances, is currently being piloted in Ottawa, Edmonton, Regina, and British Columbia’s Lower Mainland. This move comes as part of Costco’s ongoing efforts to address the issue of non-members gaining unauthorized access to their facilities.
Under the new protocol, members will be required to scan either their digital or physical membership cards upon entry. For those whose membership cards do not include a photo, additional photo identification will be necessary. The measure aims to prevent the sharing of membership cards among friends and family members who are not registered members themselves.
Despite the tightened security measures, Costco says that it remains accommodating to guests. Members are still permitted to bring non-member guests to shop with them, provided the member accompanies their guest throughout the visit. To facilitate this process and ensure smooth implementation, Costco has stationed attendants at the entrances of participating locations.
This initiative is not Costco’s first attempt to reinforce its membership policies. In recent years, the company has implemented various measures to protect the benefits of its paying members. These include requesting photo identification alongside membership cards and restricting non-member access to popular amenities such as their food courts, known for their affordable offerings like the iconic $1.50 hot dog combo.
The timing of this new verification system coincides with Costco’s announcement of impending membership fee increases for Canadian and U.S. customers. Starting September 1, annual fees for both “gold star” and business memberships will rise from $60 to $65, while executive memberships will increase from $120 to $130. This price adjustment, the first since 2017, comes with an enhanced maximum annual reward for executive members, now capped at $1,250, up from the previous $1,000 limit.
Costco’s move to strengthen its membership model reflects a broader trend among subscription-based services. Streaming giants like Netflix have already implemented similar measures to prevent password sharing, with Disney+ set to follow suit in the near future. These actions underscore the growing importance of membership integrity in the retail and entertainment sectors.
The success of this pilot program in Canada could potentially lead to a wider rollout across Costco’s extensive network of 108 locations nationwide, spanning nine provinces.
Earlier this year I witnessed an organized shoplifting theft at a Hudson’s Bay store. I recently read somewhere that Costco has very little shoplifting by its members. I wonder if scanning a Hudson’s Bay Rewards loyalty membership card at entry into a Hudson’s Bay store could reduce the incidence of shoplifting at their stores.
They want to do this to track customers.
Now they know how much time they spend in stores & how much they spend upon checkout.
It’s not all about theft and scaring away non members.
You are correct. People should protest this. They’re gathering our personal information.
My husband went into the store and both our photos came up on the screen. However, my picture was of someone that didn’t even look like me, not even the same race. So how secure is this system?