Costco Introduces Three Notable Updates in the Previous Year, Sparking Debate Among Its 79.6 Million Members Due to a Novel Member Benefit
In a strategic move aimed at pleasing its highest-tier cardholders and ensuring their loyalty, Costco Wholesale has rolled out an exclusive early shopping access perk for its Executive members. This new benefit, available seven days a week, grants Executive members early access to U.S. warehouses from 9 a.m. to 10 a.m. on weekdays and Sundays, and from 9 a.m. to 9:30 a.m. on Saturdays.
This perk is not a trivial matter for Costco. With 37.6 million (47%) of its 79.6 million paying members being Executive tier, this group of cardholders accounted for 73.1% of net sales during the fiscal third quarter. The company's aim is to maintain a renewal rate for Executive members above 90%, a goal that seems achievable given the solid 92.7% cumulative renewal rate for members across all tiers in the U.S. and Canada during the same quarter.
The new perk is seen as a smart move by some analysts, given Costco's status as a proven growth stock in the retail space. However, it's worth noting that Klarna, the buy now, pay later financial services provider, made its debut on the New York Stock Exchange in 2025. As a newly listed company, Klarna cannot have a 5-year average dividend yield, and no information on other US IPOs in 2025 meeting the dividend yield over 1.25% criterion was found in the sources.
The increase in annual Executive membership rewards last year provides a catalyst for Gold Star and Business members to upgrade, making the Executive tier even more attractive. This perk, along with the other benefits offered to Executive members, is designed to encourage members to renew their memberships year after year, contributing to Costco's continued success in the retail industry.
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