Costco Open Early for Executive Members, Boosting Sales with New Shopping Hours

Generated by AI AgentWord on the Street
Monday, Sep 1, 2025 8:01 pm ET2min read
Aime RobotAime Summary

- Costco now grants Executive Members exclusive 9-10 a.m. shopping access at all U.S. stores post-Labor Day, with stricter enforcement since August 31.

- Executive Members (73% of sales) pay $130/year for perks like early hours, 2% purchase rewards, and $10 monthly credits for Same-Day orders.

- Policy sparks mixed reactions: Gold Star members face wait times after 10 a.m., while Costco aims to boost loyalty and compete with Sam's Club's premium tiers.

- Changes align with Costco's global expansion strategy, including 914 warehouses by year-end, and $3.6B in 2025 membership fee revenue.

Costco is rolling out enhanced shopping hours for its Executive Members, starting immediately after Labor Day weekend across all U.S. stores. As of June 11,

communicated via email that stores would open doors at 9 a.m. exclusively for its upper-tier Executive Members, allowing them a full hour before other members can shop. This change, while announced earlier in the year, involved a grace period for implementation which concluded on August 31. Complications around this execution meant that some members might not have been immediately aware of the strict new entry timings.

The new shopping policy stipulates that Executive Members will have access from 9 a.m. to 10 a.m. on weekdays and Sundays. On Saturdays, this early access is slightly adjusted, concluding at 9:30 a.m. Concurrently, Costco locations will also extend closing times on Saturdays, now remaining open until 7 p.m. for all members, a change that took effect starting July 5. These modifications align Costco’s approach with competitor Sam’s Club, known for offering similar privileges to its premium members. An Executive Membership, carrying a fee of $130 annually, remains distinct from the Gold Star Membership which costs $65 per year.

Costco has emphasized that these enhanced shopping hours bring an added layer of convenience and exclusivity to Executive Members, who contribute substantially to their business. Data from the company highlights that despite comprising less than half of their membership base, Executive Members account for a significant 73% of Costco's total sales. The adjustment is designed to provide these high-contributing members with a less crowded shopping experience, rewarding their loyalty.

The enforcement of this rule has been met with both enthusiasm and a degree of contention. While Executive Members benefit from reduced checkout lines and quicker shopping experiences, not every customer is satisfied. Some Gold Star and Business members expressed dissatisfaction, feeling alienated by the decision. This sentiment was echoed online where calls for equitable access to early shopping hours were voiced. These customers now find themselves adjusting to the new timeline where they have to wait until after 10 a.m. to begin shopping.

This restructuring of hours also reflects Costco’s commitment to incentivizing higher membership tiers, potentially influencing some existing members to consider an upgrade. Beyond the exclusive store access, Executive Members receive additional perks such as a 2% annual reward on eligible purchases and a $10 monthly credit for orders exceeding $150 made through Costco's “Same-Day” service or Instacart.

With the new schedule in place, Gold Star and Business members who attempt to enter during the Executive Member hour risk being turned away, underscoring the strict enforcement of the policy. The operational changes emphasize a redefined customer experience that aligns with membership levels, and come at a time when Costco is seeing notable revenue from membership fees. The company reported nearly $3.6 billion in revenue from these fees in the first three quarters of 2025 alone.

Costco foresees that these changes will bolster its market positioning amidst growing competition. Company projections suggest an expansion in global warehouse numbers to 914 by year-end, with new store openings planned in Sweden, South Korea, and Canada. These moves reflect Costco’s broader strategy to boost its global footprint and continue expanding its loyal client base.

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