Advertisement
Advertisement

Costco Canada Tests New Membership Verification System in Selected Locations

Date:

Share post:

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. 

4 COMMENTS

  1. 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.

  2. 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.

  3. 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?

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Self-Storage Proposed for Former Hudson’s Bay Centre in Toronto

Brookfield’s new plan for the former Hudson’s Bay Centre at Yonge and Bloor introduces self-storage above street-level retail, signaling a shift in redevelopment strategy.

adidas Canada partnering with Tim Hortons Timbits Soccer

adidas Canada has announced a multi-year partnership with Tim Hortons as the official jersey partner for the Timbits Soccer program.

La Maison Simons Announces Downtown Vancouver store at CF Pacific Centre

The location will occupy part of the mall's former Nordstrom space, and will be a welcome addition to Vancouver's downtown core which saw significant vacancies.

Alice + Olivia to Open First Canadian Store in Yorkville

Alice + Olivia will open its first Canadian store at Yorkville Village in Toronto, reinforcing the area’s strength as a luxury retail hub.

National roadshows strengthening business ties with China

The roadshow series will convene business leaders, government representatives, and industry stakeholders to explore how Canadian companies can expand into the Chinese market.

Canadian consumer still under pressure with food prices: Dalhousie report

Over 80% of Canadians identify food as the expense that has increased the most.

The Brick Chick grows with LEGO popularity

An independent parts and custom design business serving adult collectors across the U.S. and Canada.

Coast Appliances Files for CCAA After Leadership Exit

Coast Appliances enters CCAA after leadership resignations, mounting debt, and operational disruptions across Canada.

Daily Synopsis: Apr 27, 2026

DoorDash partners with Empire, Abercrombie & Fitch returning to Calgary's CF Chinook, No Frills opens in Edmonton, Michaels debuts 10-minute custom framing, Artizia opens flagship, and other news.

DoorDash Expands Grocery Reach Through Empire Partnership

DoorDash adds 1,000+ Empire grocery stores across Canada, expanding its role in on-demand grocery and retail delivery.

Aritzia Unveils Expanded Flagship at CF Toronto Eaton Centre

Aritzia unveils an expanded flagship at CF Toronto Eaton Centre, introducing a larger format store with integrated café and experiential retail features.

Michaels debuts 10-minute custom framing in Canada

The new service allows customers to upload a photo directly from their phone, choose a frame with the help of a Michaels framing expert, and leave with a printed, framed and gift-boxed memory.

Woodbine Mall CCAA Signals Shift to Redevelopment

Woodbine Mall enters CCAA as lenders move to take control, signalling a shift toward redevelopment of aging retail assets in Toronto. Craig Patterson interviews Antony Karabus about the situation.

Canada losing businesses at an alarming rate: CFIB

Business exits in Canada have outpaced new business entries since early 2024, and the problem seems to be getting worse.

Growth planned for QuickBite Collective brands

Although the company was founded in 2024, its legacy brand Teriyaki Experience is celebrating 40 years in business.

GS25 Rumor Highlights Demand for Asian Convenience Retail in Canada

GS25 is not entering Canada despite recent rumours and a news article, but Toronto speculation highlights growing demand for Asian convenience retail concepts.

STRONG Pilates on aggressive expansion path

STRONG Pilates is set to expand from seven studios at the end of 2025, to 22 locations by the end of 2026, with plans to reach 40 by 2027.

Yorkdale Outpaces Canadian Malls by $700 Per Square Foot

Yorkdale leads Canadian malls with $2,368 per square foot, outperforming competitors by over $700 in 2025 rankings.

Bath Depot Opens 50th Store, Expands Western Footprint

Bath Depot, a Canadian home retailer, is set to open its 50th store in Edmonton on April 24, 2026. This opening underscores the company's expanding footprint across Canada with a growing variety of home products.

Loblaws Humbertown Reopens Amid Major Redevelopment

Loblaws reopens at Humbertown as part of a major mixed-use redevelopment transforming the Etobicoke site into a modern retail hub.