No membership, no shopping? Costco’s new controversial policy starting Sept 1 sparks outrage

After introducing a new membership perk in June, and following a subsequent grace period, Costco's controversial shopping policy will come into effect from September 1, Monday. In June, the grocery warehouse chain started allowing executive members into the store from 9 a.m. to 10 a.m. during the week. Customers with other memberships had to wait until after 10 a.m. to begin shopping at that time.

The company said the policy was not strictly enforced then. But now, it says its grace period has ended and policy will take hold on Labor Day.

What is Costco's new shopping policy?

Costco’s latest rule is set to take effect September 1. According to The Independent, Costco shoppers who enjoy executive membership have access to an hour of shopping in the morning without other customers. The exclusive window has been subject to a grace period, but it’s now coming to an end.


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Starting September 1, only those with the Executive Membership will be allowed in stores from 9 a.m. to 10 a.m. each day. The hour is slashed to a 30-minute window on Saturdays, with all customers allowed to enter the store from 9:30 a.m.

What about those who don't have executive membership?

Customers who do not hold the Executive Membership will be denied entry before 9:30 a.m. on Saturdays, and 10 a.m. all other days of the week. While the rule has now been in effect for a month, it was not strictly enforced, with signs at some Costco locations announcing a “grace period” as shoppers adjust, according to The Street.

Some customers are not happy with the change. They say Costco is favoring its higher paying members and alienating the rest. "A grace period for Gold Star and Business members will be in effect through August 31,” one sign read, per the outlet.

When Costco first announced the rule in June, some customers expressed negative feelings about it, accusing the chain of favoring its higher-paying members, and “punishing” or “alienating” the rest. Meanwhile, others were upset because at Costco locations that already had a 9 a.m. opening prior to the policy, all other members now lose an hour of shopping time.

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The policy has been met with controversy by Costco members. However, the company defended its decision, saying in a statement to Business Insider: “Our Executive Members are our most loyal members, and we want to reward them for their commitment to Costco.”

The shopping warehouse has different membership tiers with an annual fee: the $65 Gold Star and the costlier $130 Executive. The chain also offers a Business Membership for $65 annually, though that tier is exempt from the extra shopping hour.

Each membership tier comes with its own perks, including the exclusive shopping hour. Costco also rolled out a $10 monthly credit for Executive members earlier this summer.

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After months of speculation, the warehouse giant has officially dropped Pepsi in favor of Coca-Cola, igniting a wave of mixed reactions among loyal shoppers. The transition, which sparked heated debate on Reddit, was wrapped up earlier this month, with Coke products now dominating Costco food courts nationwide. By fall, every Costco location will exclusively serve Coca-Cola beverages.

Interestingly, this isn’t the first soda switch for Costco. The chain originally offered Coca-Cola before shifting to Pepsi in 2013, a move aimed at keeping its iconic $1.50 hot dog-and-soda deal intact, according to CNN. But in a surprising twist, Costco revealed in January that it would once again move away from Pepsi—this time replacing it with Coca-Cola after more than a decade of stocking Pepsi products.