Costco Expands Exclusive Hours for Executive Members, Boosts Sales by 1%

What's Happening?

Costco Wholesale has reported its fourth quarter and fiscal year 2025 earnings, highlighting the positive impact of its expanded hours for executive members. The retailer introduced exclusive morning hours for executive members in June, along with an additional Saturday evening hour for all U.S. members. These changes were aimed at increasing value and convenience, according to Costco President and CEO Ron Vachris. The new hours have contributed to a 1% increase in weekly U.S. sales since their implementation. Additionally, executive members benefit from a $10 monthly credit on Instacart purchases over $150. The company has also seen a significant rise in upgrades from gold-star members to executive memberships. In the fourth quarter, Costco opened 10 new warehouses, including locations in Canada, Korea, Sweden, and the U.S., bringing its global total to 914 warehouses.

Why It's Important?

The expansion of exclusive hours for executive members is a strategic move by Costco to enhance customer satisfaction and drive sales growth. By offering additional perks and convenience, Costco is likely to strengthen its membership base and increase customer loyalty. The 1% boost in weekly U.S. sales demonstrates the effectiveness of this strategy in a competitive retail market. Furthermore, the increase in executive membership upgrades suggests that customers are willing to invest more for added benefits, which could lead to higher revenue per member. This approach not only supports Costco's financial performance but also positions the company favorably against competitors by emphasizing customer-centric policies.

What's Next?

Costco plans to continue its expansion by opening 35 new warehouses in the next fiscal year, including five relocations. This expansion strategy indicates Costco's confidence in its growth potential both domestically and internationally. The company is likely to maintain its focus on enhancing member value and convenience, which could involve further innovations in membership benefits and store operations. As Costco continues to grow its footprint, it may face challenges such as supply chain management and maintaining high renewal rates, which will require strategic planning and execution.