Costco Makes Rare Offer to New Members Amid Membership Fee Commitment

Costco is offering a rare discount to new members, which is unusual for the store. Membership fees are the backbone of Costco's success, with 79.6 million paying members as of Q3 2025. Costco is committed to quality and value, but refuses to compromise on membership fees, which are a primary source of revenue. The company aims to grow its membership base, but does not offer discounts on membership fees.

Costco Wholesale, known for its extensive product offerings and low prices, has recently introduced a unique discount for new members. This move is unusual for the retailer, which typically adheres to a policy of not offering membership fee discounts. The promotion, in partnership with UNiDAYS, is designed to attract college students and potentially boost the company's membership base.

The discount applies to new members who sign up for either the basic Gold Star or Executive membership. College students can receive a $20 Costco Shop Card for a Gold Star membership, reducing the annual fee from $65 to $45. Executive members can get a $40 Shop Card, bringing the annual fee down from $130 to $90. These Shop Cards can be used to purchase a wide range of items at Costco, from groceries to apparel to gasoline.

Costco's commitment to quality and value has been a cornerstone of its success, but the company has been reluctant to compromise on membership fees. The fees, which are a primary source of revenue, have been a significant barrier for many potential members. The current membership base stands at 79.6 million as of the third quarter of 2025, with Executive members accounting for 47% of the total membership base but generating 73% of sales. This outsize spending power has allowed Costco to invest in perks for its premium customers, such as the recently implemented exclusive shopping hours for Executive Members.

The discount is part of Costco's strategy to grow its membership base, particularly among younger customers. With competition heating up in the warehouse club sector, Costco's dominance is under threat from rivals like Sam's Club and BJ's Wholesale Club, which offer promotional membership pricing. By targeting college students with this offer, Costco aims to attract a new demographic and potentially drive upgrades from its base-tier Gold Star members.

While Costco remains steadfast in its policy of not discounting membership fees, this limited-time offer could be a strategic move to attract new members. The company has not commented on whether this promotion will lead to a permanent change in its membership fee policy. However, if the offer proves successful in driving new memberships, it could influence Costco's future strategy.

References:
[1] https://www.newsday.com/business/costco-new-member-perks-long-island-store-hours-akl2h6ug
[2] https://www.thestreet.com/retail/costco-makes-extremely-rare-offer-to-some-new-members
[3] https://finance.yahoo.com/news/costco-just-gave-bargain-hunters-162047729.html