Achi news desk-
At least one Costco store in Ottawa has implemented a digital card scanner for member entry, a departure from the traditional personal card check, in an effort to crack down on shoppers who haven’t paid a membership fee.
Traditionally, store employees would be seen at the front entrance simply looking at the membership card with the member’s photo to verify their identity.
It is not clear how many stores have adopted the digital checkout system, but the system was seen in use at the Merivale Road location in Ottawa.
Costco shopper Debbie Lascelle is a longtime member who likes the retail warehouse for its selections and price points.
She usually goes to the Merivale Road location and says the store started using a digital card scanner at the front door about three weeks ago.
“You have to scan your membership card and your picture comes up on a screen to make sure it’s the right person coming in,” he said.
“I think it’s a good idea. If they were having a problem with people coming in and people misusing the cards, then I think that helps all of us.”
CTV News Ottawa reached out to Costco Canada for an interview or statement, but has not yet received a response regarding the scanners. However, the moves appear to be in line with a similar initiative being tested at some of its US locations.
According to US media reports, Costco’s scanning is aimed at curbing non-member access, particularly those using self-checkout machines.
Retail analyst Bruce Winder compared this approach to Netflix’s recent strategy of preventing account sharing.
“I think the biggest reason Costco was testing the scanners at the door is to try to reduce the amount of people borrowing someone else’s membership card and going in to get the benefits,” Winder said.
Winder says a large part of Costco’s profit comes from membership fees.
The new scanning system is also likely to prevent non-members from accessing the Costco cafeteria and its cheap items like the popular $1.50 hot dog and drink combo.
Despite some potential opposition, Winder says he is likely to see the expansion of digital scanners at points of entry.
“They’re already doing it with the cash and I think people are realizing that they want to keep prices low and they want to make sure that members enjoy the benefits,” Winder said. .
Costco membership is not transferable, but a second card can be provided to another person in the same household. Cardholders can also bring two non-members into the store per visit.
Costco’s immense popularity is reflected in its numbers.
In 2022, there were 119 million cardholders, placing the retail giant as one of the largest membership clubs worldwide.
