Costco at dawn used to be like a starting gun for shopping: there was only one set of doors that opened at a certain time, and everyone rushed in to get fried chicken and cheap gas.
Not any longer. As of June 30, the company opened a “9 a.m. club”—a full hour during which only its $130-a-year Executive Members can walk the huge hallways. When people with Gold Star cards get there, their carts are already half-full.
The fine print of the golden hour
The new rule says that Executive members must flash their black-bordered cards every day at 9 a.m., Monday through Friday, and Sunday, and every Saturday from 9 to 9:30 a.m.
Standard members can still enter at 10 a.m. (9:30 a.m. on Saturdays). To make things even better, Costco adds a $10 credit to every Executive account every month that can be used on Same-Day or Instacart orders worth $150 or more. You don’t have to go to the building, and the perk will cover some of the delivery cost anyway.
Aside from that, members also get 15% off Figo pet insurance, extra savings on the Costco Auto Program, and sometimes a tech deal that is only available to members and isn’t in the coupon book. All of them don’t cost the store much, but when put together, they make the black card look better.
Why does Costco do this now?
Take a look at the numbers. There are 47% of U.S. memberships that come from executive households, but they make up 73% of world sales, and 92.8 percent of them renew every year. The tier fee went up from $120 to $130 last fall, and CEO Ron Vachris promised that people would see the extra value. The first real returns are early entry and digital points.
You can also find a traffic game. Early in the week and on Saturdays, the parking lots are full, the aisles are crowded, and the checkout line is as long as a theme park. Giving big spenders an early start cuts down on peak traffic without adding more cashiers. It looks better when there are fewer carts squished together at 11 a.m.
Life in the two-tier line
Some Gold Star buyers feel cut down. One Phoenix user wrote on Reddit, “I paid my $65 and now I watch them wheel out the beef tenderloin before I get through the door.” Others just shrug and say that sleeping in is better than getting the first grapes anyway. Inside, early birds enjoy the reverberating hallways, full bakery racks, and not having to look for a parking spot.
But this is not a new idea for a plan. Sam’s Club, a competitor, has let Plus members in at 8 a.m. for years, which is advertised on its help pages as a perk. Last winter in New England, BJ’s Wholesale tried out a “Express Entrance” at 9:30 for its Elite level. So Costco’s move is more of a match than an innovation, even though it comes with an extra hour for coffee lovers and an Instacart feature.
Will the number of people with black cards grow?
Most likely. Once a family spends about $3,250 a year, the $65 price difference between tiers goes away because of the 2% Executive refund. You’ll get even closer to $2,500 if you add $120 in delivery points. A family of four that hauls twice a week sails past that before Thanksgiving. Costco insider polls show that as many as 8% of Gold Star members are thinking about upgrading after the news.
When employees start work early, there are more people on job at 8:45 and less overlap in the middle of the morning. IT is making changes to the entrance scanners so that they now flash the tier level in real time. This gets rid of the awkward “your card is the wrong color” argument. Insiders say that the calm hour is also used as a testing ground for new scan-and-go technology. If the pilot works, the no-phones rule might still apply during normal hours.
The way Costco grew was by letting everyone shop like a treasure hunter. But its newest perk literally turns back the clock for the customers who have helped it grow the most. The quiet hour will be worth a lot to some people. For some, getting more sleep is more important than beating the crowds. This is how the warehouse wars became boarding groups. The black card now feels a little more like first class.
