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In June, Costco expanded its operating hours at select locations, giving Executive members an extra morning hour from 9 a.m. to 10 a.m. on weekdays and Sundays, and an additional half hour from 9 a.m. to 9:30 a.m. on Saturdays. By September, this benefit was available to Executive members at all Costco locations.
A recent report published on Thursday by analytics firm Placer.ai indicates that this adjustment has significantly impacted foot traffic for the wholesale leader, “likely enhancing the overall shopping experience for members” by facilitating “a more balanced flow of visitors.”
The adjustment to Costco’s operational hours has prompted visits to shift to earlier parts of the day while reducing foot traffic during typical peak periods, which according to House Beautiful, usually occur on weekday evenings from 4 p.m. to 7 p.m.
“By offering extended hours to Executive members, Costco effectively acknowledges high-value customers and mitigates crowding during usual peak times,” the report states.
In its latest quarterly release from late May concerning the third quarter that finished on May 11, Costco reported strong sales momentum. The net sales saw an increase of 8%, reaching $61.96 billion, compared to $57.39 billion the year prior. The company is set to announce its fourth quarter earnings on September 25.
An Executive membership at Costco costs $130 per year. The Business and Gold Star memberships are each priced at $65 annually.
Costco’s memberships serve as a crucial revenue stream, enabling the company to maintain low prices by balancing operational costs. During the 2024 fiscal year, which ended on September 1, 2024, Costco accrued approximately $4.8 billion in membership sales, up from $4.6 billion in 2023. Membership fees accounted for nearly 65% of Costco’s overall $7.4 billion net income for that year.
The company had nearly 137 million cardholders in 2024, with a 90% renewal rate, per the company’s 2024 annual report. Close to half of that count (47%) were Executive members.
Costco has 905 warehouses globally, including 624 in the U.S. and Puerto Rico, according to the quarterly report.
In June, Costco extended its hours at some stores for Executive members, adding an hour in the morning from 9 a.m. to 10 a.m. on weekdays and Sundays and a half hour from 9 a.m. to 9:30 a.m. on Saturdays. By September, the perk applied to Executive members at all Costco stores.
Now, according to a new report released on Thursday from analytics company Placer.ai, the move has resulted in measurable effects in foot traffic for the wholesale giant, “likely improving the shopping experience for members overall” by creating “a more balanced flow of visitors.”
Costco’s earlier hours have shifted visits to earlier in the day while decreasing foot traffic during peak hours (which are typically weekday evenings from 4 p.m. to 7 p.m., according to House Beautiful).
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