Costco to Enforce New Shopping Schedule Starting Labor Day

Costco will begin enforcing its new shopping schedule on Labor Day, with Executive Members having exclusive early access from 9 a.m. to 10 a.m. on weekdays. Other shoppers will not be allowed to enter during this time. This schedule has been in place since June, but Costco has been lenient in enforcing it. The change is expected to alleviate congestion and improve shopping experience for all members.

Costco (NASDAQ: COST) will begin strictly enforcing its new shopping schedule on Labor Day, marking a significant change in the retailer's operational policy. The new schedule, which has been in place since June, grants Executive Members exclusive early access from 9 a.m. to 10 a.m. on weekdays, while other shoppers are not allowed to enter during this time. Previously, the retailer had been lenient in enforcing this rule, giving many customers a grace period [1].

The move is aimed at alleviating congestion and improving the overall shopping experience for all members. The retailer has cited the need for better organization and efficiency as reasons for the stricter enforcement [1]. This change is expected to have a positive impact on the shopping experience by reducing early morning crowds and allowing Executive Members to shop at a more convenient time.

The new shopping schedule comes at a time when Costco is experiencing robust growth. The company reported net sales of $61 billion for the first quarter of its 2025 fiscal year, a 7.5% increase compared to the same period last year. This growth is attributed to increased sales ahead of Black Friday and the official start of the holiday shopping season, as well as a rise in membership fees [2].

Costco's membership fees have seen a significant increase, with annual Gold Star memberships rising from $60 to $65, and executive memberships increasing from $120 to $130. The company also reported a 7.6% increase in revenue from membership fees, contributing to the overall sales growth [2]. The increase in membership fees, coupled with the new shopping schedule, is part of Costco's strategy to generate additional revenue and improve operational efficiency.

The new shopping schedule is likely to be well-received by Executive Members, who have been enjoying the exclusive early access since June. However, it may cause some frustration among other shoppers who were previously allowed to enter during the early morning hours. The retailer has not yet provided specific details on how it will handle the transition or address any potential concerns from non-Executive Members.

In conclusion, Costco's enforcement of the new shopping schedule is a strategic move aimed at improving operational efficiency and enhancing the shopping experience for all members. The retailer's robust growth and increased revenue from membership fees indicate a strong financial performance, which is likely to continue with the new operational policies in place.

References:
[1] https://seekingalpha.com/news/4490689-costco-s-early-shopping-hours-rule-to-be-enforced-starting-labor-day
[2] https://www.usatoday.com/story/money/2024/12/12/costco-membership-earnings-release/76943474007/