Recently in a statement, the self-service store chain with a price club format, Costco announced that take action against the sharing of membership cards, after it became known that many customers were using them without being members.
In this sense, part of the changes that the chain will implement is that it will ask the owners of the membership cards to present the affiliation together with an identification for the self-payment service.
According to Costco reports, in 2022 had about 66 million paid affiliates and approximately about 119 million cardholdersranking above other membership club chains like Amazon and Sam’s Club.
For this reason, Costco noted in the statement that “we do not believe it is right for non-members to receive the same benefits and prices as our members,” it said. The prices of a regular membership is currently $60 dollars and executive card about $120 dollars each year to buy in the clubs.
“As we achieve growth in our membership base, we increase executive member penetration and we maintain high renewal rates materially influences our profitability”, stand out the reports of the chain.
In 2022, Costco earned more than $4.2 billion in membership dues, an increase of 9% compared to 2021. Part of the company’s profits are from affiliate fees and with this the chain compensates the expenses and allows its prices to remain the same or lower than those of the competition.
Though it hasn’t been official, Costco has hinted a couple of times that it might raise the price of its membership soon, following its last hike in 2017.
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Source: La Opinion
