Canadian shoppers: Costco cracking down on membership moochers
Costco, the discount giant, is implementing a system to prevent membership abuse. Soon, they'll have to scan their membership card when they enter the store. This action is done to prevent the entry of people who use other people's membership cards.
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fee, they only had to show their membership card to the entry clerk.
The new system is being tested in select stores in Ottawa, Edmonton, Regina and British Columbia.
Customers must scan their membership or digital card and guests must check in with a valid member.
Costco could do this to avoid long waits at checkout as well as better update members on their membership status.
Some agents are unhappy with the change because they believe it will dehumanize the store.
Analysts believe that the main purpose of this action is to prevent the use of membership and increase revenue through the sale of more membership.
Costco isn't the first company to take action to prevent membership abuse. Netflix has also taken steps to limit password sharing.
Membership fees make up a large portion of Costco's profits and help lower prices.
Starting September 1st, membership fees will increase.
Costco hopes this move will encourage some people who use other people's memberships to buy personal memberships.
In total:
Costco is trying to use new technology to prevent fraud and increase its revenue. This action may be taken to make a purchase, but it seems to be done to maintain a balance between the company and the customer.
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