(Toronto) Costco is testing membership card scanners at store entrances in several locations across Canada.
The retailer said it is testing them in stores in Ottawa, Edmonton, Regina and the Lower Mainland of British Columbia. Costco requires customers to pay an annual fee and present their membership card when shopping at its stores.
The new scanners are located at the entrances to Costco warehouses and require customers to scan their card before entering.
Liza Amlani, co-founder of Retail Strategy Group, said the change makes sense because membership cards are where Costco really makes money.
The company may be concerned about what CNN recently dubbed “member profiteers,” M said.me Amlani, and seeks to prevent non-members from using other people’s cards to access the warehouse.
She doesn’t think most members will be too disrupted by the change. “I don’t think it’s going to be a problem for customers who actually pay for their membership.”
However, Mme Amlani said she thinks Costco could do a better job communicating the change.
“It’s really about protecting their members who pay for a subscription,” she said.
Before the introduction of scanners, Costco employees would check memberships as customers entered the store. According to Costco’s website, there will always be an attendant at the door to provide assistance or answer questions.
Having an attendant is a good idea to alleviate any misunderstandings or problems with the technology and maintain a human element, Mr.me Amlani.
If the membership card does not have a photo, Costco says customers should be prepared to show a valid photo ID.
Costco recently announced that it would be raising membership prices in the fall — by $5 per year for an individual, business or business add-on membership, and $10 for executive members.
The company has more than 100 stores in Canada.