The past few years have been tough on Americans, with soaring interest rates and rampant inflation. Many consumers have turned to Costco for savings on groceries and household essentials.
But Costco has introduced its fair share of policy changes over the past year. And not every update has been a positive one.
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In September, Costco raised its membership fees for the first time since 2017. The cost of a basic membership increased from $60 to $65, while the cost of an Executive membership rose from $120 to $130.
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Costco also began enforcing its members-only policy at its food courts last year. It used to be that anyone could waltz into Costco for a cheap hot dog and soda. And the warehouse club giant used its food court as a means of attracting new members.
But Costco has been cracking down on membership sharing. And restricting food court access aligns with its goal to limit in-store perks to members only.
Costco has also increasingly installed membership card scanners at its warehouse club stores, and the reaction among members has been mixed. Some say that the scanners cause bottlenecks at store entrances. But not everyone is bothered by this change, and the hope is to make it a seamless part of the shopping experience.
Costco announces a positive change for members.
Costco gas is a huge member benefit
In addition to grappling with rising food costs, consumers have seen the cost of gas increase.
In January, gasoline prices were up 1.8% on an annual basis, according to the Consumer Price Index. And a 2024 PYMNTS survey found that gasoline has become one of the most common expenses for consumers to pay for in installments.
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Costco has long been known as a source of low-cost gasoline. It’s commonly reported that Costco’s Kirkland fuel is 20 cents cheaper per gallon than competing stations. For people who drive and fill up regularly, the savings can be huge.
Best of all, like its food courts, Costco limits its gas stations to members only. That, combined with Costco’s efficiently run fuel stations, makes the process of getting gas quicker and easier.
Costco fuel stations are equipped with extra-long pump hoses so members can fill up from either side of their vehicles. Lanes are also designed as one-way only to keep traffic flowing.
A positive change at Costco gas stations
Costco’s limited warehouse club hours have long been a point of frustration for members with non-traditional schedules who need the flexibility to shop early or late in the day. But Costco just announced that it’s extending its gas station hours beyond its typical warehouse club hours.
In a recent social media post, Costco listed its new gas station hours as 6AM to 10PM Monday through Friday, 6AM to 8:30PM on Saturdays, and 6AM to 7:30PM on Sundays. Hours may vary in California and Hawaii.
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The early morning hours in particular are apt to appeal to commuters who like to fill up their cars before heading to work. And these extended hours could also lead to even shorter wait times for Costco fuel.
In addition to its low prices, Costco fuel offers another key benefit: a high level of quality that exceeds that of standard fuel.
Costco’s Kirkland Signature Gasoline has been certified to meet TOP TIER performance standards. The warehouse club giant’s gas is specially formulated with deposit control additives that clean engines and reduce harmful buildup.
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Costco gas can lead to improved engine performance and superior mileage per gallon. So not only is there savings in the lower per-gallon cost, but there’s added savings in the form of better performance.
In addition to traditional gasoline, some Costco fuel stations carry Kirkland Signature Diesel. Costco’s diesel fuel, too, is certified to meet TOP TIER standards.
In the coming months, we could see more positive changes emerge at Costco as a new leadership team strengthens its foothold.
At the start of 2024, Costco CEO Craig Jelinek stepped down after a decade of service and was replaced by Ron Vachris, the chain’s former president and COO. CFO Richard Galanti also resigned in 2024 and was replaced by Gary Millerchip.
The team is focused on customer retention and will no doubt collaborate on additional ways to enhance the member experience.Â
Maurie Backman owns shares of Costco.
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