June 27 (UPI) — Costco is taking action against shoppers who utilize other people’s membership cards to purchase bulk-sized drinks, food, and other products.
The membership-based warehouse retailer announced on Tuesday that it has enhanced its enforcement of photo ID verification for shoppers who opt to use the self-checkout option, following a rise in unauthorized card-sharing.
“We believe it is unfair for non-members to enjoy the same benefits and pricing as our members,” the company stated in a statement. “In addition to requesting membership cards at checkout, we are now requesting photo identification along with their membership cards at our self-service checkout registers.”
Costco charges $60 for annual memberships and $120 each year for its Executive Membership. The company relies heavily on membership fees to generate earnings and maintain low prices.
“Membership fees play a significant role in enabling Costco to offer competitive prices by offsetting our operational expenses. Therefore, our membership fee structure holds great importance for us,” the company explained.
While sales of food items have increased for Costco due to inflation, demand for pricier merchandise such as electronics and furniture has slowed down.
“During these challenging times, particularly with high-ticket discretionary items, we all face difficulties,” said Richard Galanti, Costco’s chief financial officer, during an earnings call in December.
Costco’s crackdown on membership sharing follows Netflix’s earlier announcement this year that it would no longer allow password sharing between households.
Costco’s shares have risen by nearly 16% since the beginning of the year. The stock closed at $530.33 on Tuesday.
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