Heads up: Costco is reportedly doing spot checks at the self-checkout counters in hopes of weeding out non-members.
In response, Costco is reportedly doing spot checks at the self-checkout counters in hopes of weeding out non-members.
Costco requires all of its nearly 70 million annual membership shoppers to showcase their ID cards upon entering the store and at check out. The ID has an image of the cardholder on it. "Those Costco memberships equal revenue and profit for Costco the retailer, so when that membership gets shared, Costco ends up losing money and losing profits," retail analyst Hitha Herzog said.The basic membership allows the cardholder to bring one additional person, who lives at the same address, into the store.
"Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses," Costco said."We don't feel it's right that nonmembers receive the same benefits and pricing as our members." Costco's business model operates in such that the bulk of its earnings come from membership fees -- covering company expenses and keeping prices low.
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