Costco has rolled out a game-changer for its US shoppers. Starting 30 June 2025, Executive Members can access warehouses an hour early, from 9am daily, giving them a quieter shopping experience before Gold Star and business members enter at 10am (9:30am on Saturdays).
According to the New York Post, this 'VIP Hour' has sparked a rush to upgrade memberships, with 37.6 million Executive Members, 47% of Costco's base, driving 73% of sales.
But at £104 ($130) annually, double the £52 ($65) Gold Star fee, is the upgrade worth it?
Beat Crowds with Early Access
The 'VIP Hour' is a major perk for Executive Members, who can shop from 9am Monday to Sunday (9.30am Saturdays), including at food courts and pharmacies (except Sundays, when pharmacies are closed).
Business Insider notes this move, announced via employee email, aims to reward loyalty, as Executive Members account for £2.88 billion ($3.6 billion) of Costco's £3.84 billion ($4.8 billion) in 2024 membership revenue.
Social media is abuzz, with X posts praising the quieter aisles, one user saying, 'It's a game-changer for busy parents.'
Weigh the Cost of Elite Status
At £104 ($130) annually, the Executive Membership isn't cheap, but it offers more than early access.
Members get 2% cashback on purchases up to £1,000 ($1,250) yearly and discounts on services like travel and insurance.
TheStreet calculates the break-even point at £2,600 ($3,250) in annual spending, achievable for frequent shoppers.
A new £8 ($10) monthly Instacart credit for orders over £120 ($150) sweetens the deal, per New York Post.
Yet, Gold Star members, paying half the price, lose an hour of shopping time at some locations, sparking complaints on X about feeling 'punished' for not upgrading.
With Costco's 79.6 million members, the split, 47% Executive, 53% Gold Star, highlights a divide in perceived value.
Navigate a Divided Shopper Base
The 'VIP Hour' has polarised customers. Executive Members, who drive 73% of sales despite being a minority, feel rewarded, but Gold Star members, especially in regions like California where 9am openings were standard, are frustrated.
Business Insider reports some calling it 'discriminatory', arguing all members should access early hours. Costco's response?
A grace period until 31 August 2025 for non-Executive members to adjust. Meanwhile, competitors like Sam's Club offer Plus members at £88 ($110) two-hour early access from 8am, per RetailWire, raising questions about Costco's edge.
With membership fees generating £3.84 billion ($4.8 billion) in 2024, Costco's betting on exclusivity to retain high-spenders, but risks alienating its base.
Is Elite Access Worth the Price?
Costco's 'VIP Hour' rewards its 37.6 million Executive Members, who generate £2.88 billion ($3.6 billion) of the £3.84 billion ($4.8 billion) membership revenue.
And, with early access and perks like 2% cashback and £8 ($10) monthly Instacart credits, justify the £104 ($130) fee for big spenders averaging £2,600 ($3,250) yearly.
But Gold Star members, paying £52 ($65), feel penalised, waiting until 10 am, especially in regions like California where early openings were once standard.
As X buzzes with praise from early shoppers and complaints from others, Costco risks alienating its 42 million Gold Star base to rivals like Sam's Club, whose £88 ($110) Plus membership offers longer early access.
Costco must ensure its 79.6 million members feel valued, or loyalty could crumble. The upgrade's worth depends on your spending, schedule, and love for exclusive perks, choose wisely, or you'll be queuing at 10 am.
Originally published on IBTimes UK
