Costco, one of the leading retailers in the United States, has made significant changes that are surprising its members. Although prices have increased recently, the company remains competitive in the retail market because of its exceptional customer service policies.
The recent price update has raised the cost of the basic membership to $65 and the executive membership to $130. Despite this increase, Costco remains a favorite among consumers, but, with the aforementioned price increase, some members felt concerned about the value for money. However, Costco hasn't stood still and has taken this moment to strengthen its relationship with customers by adding new exclusive benefits.
The appeal of the executive membership
One of the main changes that has caused a stir is Costco's executive membership. Although it costs twice as much as the basic one, about half of the members choose this option. The main appeal of this membership is the 2% cashback on all purchases made, which accumulates over time and offers a great incentive.
For those who shop regularly at Costco, the break-even point for the executive membership to be profitable is about $3,250 per year. This threshold ensures that frequent shoppers can recover the additional cost of the executive membership with the cashback they get on their purchases. Thus, those who spend more in the store throughout the year benefit significantly from this plan.
Costco announces the return of a highly desired benefit
In a surprising turn, Costco has decided to reinstate the early shopping option for executive members in some of its stores. This advantage had been removed years ago, but now all executive members can access the stores between 30 and 60 minutes before regular opening. For many, this is a relief, as it avoids crowds and makes for a more relaxed shopping experience.
This early access adds to the other benefits of the executive membership, such as the 2% cashback. In addition, Costco is focusing on increasing the flexibility of its store hours, which can make shopping more convenient. This is part of an ongoing effort to improve the customer experience and keep its members' loyalty.
Costco continues innovating to keep on top
Costco's CEO, Ron Vachris, recently mentioned that the company is exploring ways to expand store hours. The goal is to take advantage of the success of extended hours at the gas stations.
If this idea is implemented, Costco members will be able to enjoy more flexible hours and less crowding. This innovation shows that Costco is committed to adapting to the changing needs of consumers, something crucial in such a competitive market.