A major wholesale retailer made some interesting changes to its membership program in 2025. These changes included changing membership levels and removing a popular benefit that was available nationwide.
These updates show the store is trying to offer good value to its customers while still running a business to make more money. Let’s take a look at the changes for 2025.
Who Made these Membership Changes?
Costco Wholesale, a massive warehouse store with almost 80 million members worldwide, made these membership changes. Executive members pay $130 annually.
They make up roughly 37.6 million of the 80 million members and also bring in 73% of Costco’s sales! Costco’s leadership wanted to shift its focus to rewarding its most loyal customers while maintaining the value of its membership model. The CEO, Ron Vachris, shared these new benefits after receiving good feedback about longer gas station hours.
So, What are the New Benefits?
The recent updates to Costco’s membership program have revealed many changes, especially for the Executive Members. One benefit is that Executive Members can enter Costco an hour earlier than the other members, starting at 9 a.m.
This is great because it allows members to shop during a quieter time, avoiding big crowds and long queues. This makes shopping more comfortable for executive members. Not only can they shop at earlier times, but they also receive a 2% reward on most of the purchases made throughout the year. Costco has even increased the cap on this reward from $1,000 to $1,250!
Now you can earn a little more cashback on your spending. Usually, to every upside, there is a downside; many customers have been disappointed by the removal of the coffee grinders. Members could buy whole-bean coffee, and then they could grind their coffee in-store before going home. A lot of coffee enthusiasts enjoyed this perk of having a fresh grind.
When Did These Changes Happen?
These changes started happening in mid-2025. The official announcement for Executive Members to enter earlier was officially announced in June 2025. While that was implemented not too long ago, the fee increases took place on 1 September 2024, the first price rise in almost seven years!
Gold Star and Business memberships rose from $60 to $65, and Executive memberships increased from $120 to $130 annually. Costco’s official customer service explained: “Our membership fees help to offset operational costs so we can keep our prices low. A modest fee increase will allow us to bring our members even greater value.”
Costco explained that while they lost one perk as members, they still wanted to deliver value to them, and the price hike was necessary to cover rising operational costs.
Which Costco’s are Affected?
Costco’s throughout the United States and Canada have applied these changes. This is where most of Costco’s membership is based. This means that no matter which Costco location members visit in the U.S. or Canada, they will experience the same updated membership policies and fewer in-store conveniences.
Costco also plans to open 28 new warehouses in 2025, including its 900th location in Massachusetts! Applying these changes to every Costco helps it maintain a uniform customer experience while balancing member value and operational efficiency.
Why Did They Change the Perks?
Costco needs to manage rising costs effectively as its business model drives them. The company earns a lot of its income from the membership fees; in 2023 alone, it was $4.5 billion in profit. Costco hopes that the new added benefits will encourage members to shop more and keep their memberships active.
By increasing the fees, the company can cover higher expenses such as employee wages, as Costco has been expanding its personnel while maintaining competitive pay. Costco hasn’t publicly announced the reasons behind the removal of the popular coffee grinders, but it is likely due to maintenance and misuse. The company’s approach helps to keep the business profitable while keeping loyal customers happy throughout its extensive warehouse network.
Stricter Membership Rules
Costco has also decided to have stricter rules to ensure that only paying members can get access to the warehouse. All members are required to scan their membership when entering the store, and on some occasions, staff will also ask for their photo ID for verification. This move helps not only to make sure that the revenue doesn’t decrease but also to maintain the store’s reputation as a store for loyal, paying customers who do not encourage freeloaders.
Luckily, many customers have reacted positively to these changes because they see it as a way to keep the membership program fair and exclusive. For example, one user on Reddit mentioned: “Costco’s treating their memberships like they’re AmEx Platinum cards… and honestly, I respect it.”
How Do Members Feel About the Changes?
There has been a divide of mixed feelings among customers regarding the fee increase. Some customers have expressed their frustration over rising costs, but others have noted Costco’s value.
While the membership prices hiked, Costco’s membership numbers continued to grow. This shows that Costco has a lot of customer loyalty and is satisfied with the overall shopping experience.
This is How the Membership Model Stands Out
Costco members enjoy the added benefit of relying on stable prices rather than flash sales or collecting coupons. Most retailers attract their customers with regular discounts, while Costco has its members pay upfront but enjoy the benefits throughout the year.
This is a clever way to ensure that customers become regular shoppers instead of occasional visitors looking for one-time bargains. By having loyal customers, the company can predict customer demand more accurately, allowing them to offer lower prices on bulk items. Costco’s membership model creates a shopping environment where trusted customers feel appreciated and motivated to return.
Our Last Thoughts
Costco’s 2025 membership upgrade introduces some practical benefits for its highest-tier members while still being able to quietly remove another convenience.
The company is focused on keeping the scales balanced while maintaining the customer experience and adjusting other necessary operations, including fee increases and more control over membership use.
Although some members are unhappy with specific changes, Costco’s primary goal is to keep its successful membership-based business strong for many years.