Costco to test entrance scanners in Canada in crackdown on 'membership moochers' (2024)

TORONTO — Costco Wholesale Corp. is testing membership card scanners at the entrances to its stores at several locations across Canada.

The retailer says it’s testing the scanners at stores in Ottawa, Edmonton, Regina and the B.C. Lower Mainland. Costco requires shoppers to pay an annual membership fee and show their membership cards when shopping at its stores.

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The new scanners are located at the entrances to Costco warehouses and require shoppers to scan their card before entering. Guests must be accompanied by a valid member for entry to the store.

Liza Amlani, co-founder of the Retail Strategy Group, said the change makes sense, since membership is where Costco really makes its money.

The company may be concerned about what CNN recently dubbed “membership moochers,” said Amlani, and is looking to prevent non-members from using others’ cards to access the warehouse.

She doesn’t think most members will be too troubled by the change.

“I really don’t see this being a problem for customers that are actually paying for their membership,” Amlani said.

However, Amlani said she thinks Costco could be doing a better job in its communication around the change.

“It is really to protect their members who pay for a subscription,” she said.

“They care about their customers, who are paying customers, who pay for this exclusive membership, and I think that’s a good thing, and I think that’s how they should be handling the PR of it all, that this is a good thing for their members.”

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Before the introduction of the card scanners, a Costco employee would check memberships as shoppers entered the store. According to Costco’s website, there will also always be an attendant at the door to provide assistance or answer questions.

Having an attendant present is a good idea to mitigate any friction with the technology and retain a friendly human element to the interaction, Amlani said.

If the membership card has no photo, Costco says customers should be prepared to show a piece of valid photo ID.

Costco recently announced it’s raising membership prices in the fall — by $5 annually for an individual, business or business add-on membership, and $10 for executive members.

The company has more than 100 stores across Canada.

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