Costco, long celebrated as retail’s great equalizer, has shattered its egalitarian image with a stunning policy shift. Since September 2025, Executive Members paying $130 annually enjoy exclusive early shopping hours while regular $65 Gold Star members wait outside locked doors.
This unprecedented “velvet rope” strategy represents Costco’s first-ever class-based access barrier, fundamentally transforming the warehouse club’s democratic shopping experience.​
Membership Revenue Powers Strategy
Costco’s membership fee revenue surged to $5.3 billion in fiscal 2025, up from $4.8 billion in 2024. This high-margin income stream flows almost directly to the bottom line, enabling the company to maintain its famous low-margin pricing strategy.
The tiered access policy aims to reward the highest-spending members, who account for 74% of total sales, despite representing less than half of the membership base.​
Who Gets Left Behind
Approximately 42.3 million non-Executive members now face restricted access during peak shopping hours. These “regular” members—many from working-class and middle-income households—find themselves locked out during the early hours, while Executive Members browse the emptier aisles.
The policy has sparked accusations that Costco is abandoning the very customers who built its reputation as an accessible, family-friendly retailer.​
The New VIP Hours
Executive Members now enjoy exclusive shopping from 9-10 a.m. weekdays and 9-9:30 a.m. Saturdays, with Sunday access from 9-10 a.m. Regular members must wait until 10 a.m. to enter.
This “VIP hour” provides quieter aisles, better parking, and first access to limited-stock items and fresh produce—advantages that fundamentally alter the Costco experience for those who can afford the premium membership.​
The Executive Member Goldmine
Costco’s 38.7 million Executive Members generate an astounding 74.2% of the company’s worldwide sales while representing just 47.7% of total memberships. Each Executive household spends significantly more annually than Gold Star members, making them extraordinarily valuable to Costco’s bottom line.
The early access perk aims to deepen loyalty among these high-value customers and convert more Gold Star members to upgrade.​
Membership Fee Revenue Explosion
Costco’s membership fees generated $4.8 billion in fiscal 2024 and $5.3 billion in fiscal 2025, representing nearly pure profit with minimal associated costs. The September 2024 fee increase—from $60 to $65 for Gold Star and $120 to $130 for Executive—was the first hike in seven years.
This revenue stream accounts for 65.5% of Costco’s net operating income and enables the company’s famous low-margin pricing strategy.​
Parking Lot Frustration
At warehouse locations shortly after the policy launched, non-Executive Members stood outside locked doors, visibly frustrated as they watched premium members shopping inside.
Social media exploded with images of people waiting in parking lots, highlighting the stark visual divide between membership tiers that contradicts Costco’s traditional image of inclusivity. Members expressed disappointment with the new class-based access system.​
Employee Backlash
Costco employees expressed serious concerns about the policy, reporting increased pressure on already-stretched staff. Warehouse staff now arrive as early as 3 a.m.—an hour earlier than before—to prepare for early opening.
Employee comments on social media noted the challenges of opening stores earlier while maintaining quality standards. The added pressure has created operational challenges at stores across the nation.​
The Parking Lot Divide
Executive Members arriving at 9 a.m. enjoy prime parking spots near entrances, while non-Executive members who arrive during the same hour must wait in their cars or parking lot areas.
This visible segregation in shared spaces has amplified feelings of exclusion among regular members. Critics on social media questioned whether the policy conflicts with Costco’s image as an everyman brand.​
The Checkout Paradox
Despite early access, many Executive Members report longer checkout waits because fewer registers open during VIP hours. Some locations operate with reduced cashier staffing during early opening, creating bottlenecks that undermine the premium experience.
Members have questioned the value proposition when operational challenges offset the benefits of early shopping access.​
Middle Class Erosion Context
The policy’s September 2025 rollout coincided with the intensification of economic pressure on middle-class Americans. Inflation, housing costs, and stagnant wages have squeezed household budgets, while SNAP benefits declined amid government cutbacks.
Costco’s timing amplified criticism that the company is capitalizing on, rather than resisting, growing wealth inequality. The warehouse giant’s shift mirrors broader “velvet rope economics,” which are dividing American society.​
The Psychology of Exclusivity
Retail analysts note Costco leverages exclusivity and loss aversion to justify the $65 membership upgrade. Once customers feel they’re missing out on benefits, the psychological pressure to upgrade intensifies.
This strategy—similar to airline tiered memberships—creates a perceived value that may not align with actual benefits. The policy transforms membership from simple access into a status symbol with tangible privileges.​
Stocking Shortages Reported
Executive Members shopping during early hours frequently encounter incomplete stocking, particularly in produce sections. Member reports on social media indicate that delivery schedules result in some warehouses lacking fully stocked produce during early Sunday openings.
The famous Costco sample stations don’t appear until regular hours begin, denying early shoppers this popular perk. These operational gaps suggest challenges in implementing the policy.​
Brand Reputation at Risk
Costco built its stellar reputation on fairness, employee welfare, and democratic access. Consumer research indicates an increasing preference for brands that demonstrate a genuine commitment to inclusion.
The class barrier policy directly contradicts this positioning, risking customer loyalty among the broader membership base, which feels devalued. Unlike competitors facing boycotts, Costco has historically avoided controversy through consistent values.​
The Conversion Campaign
Costco employees now actively encourage Gold Star members to upgrade at checkout. The company explicitly trains staff to promote Executive memberships, turning every transaction into a sales opportunity.
Since announcing the new executive benefits, Costco has seen meaningful increases in upgrades from Gold Star to Executive membership. This represents a more aggressive approach to membership tier conversion than Costco historically employed.​
The Millennial Disconnect
Costco’s membership base skews toward older demographics, with Baby Boomers and Gen X representing the majority. The bulk-buying model doesn’t always resonate with younger shoppers, who are often single or childless.
However, almost half of new member sign-ups are now from individuals under the age of 40, suggesting potential for growth in younger demographics. Adding financial barriers through premium memberships may complicate efforts to attract this emerging customer segment.​
Competitive Pressure Intensifies
Sam’s Club and BJ’s Wholesale Club also offer tiered memberships with growing premium member bases. BJ’s has recently raised its fees, while Sam’s Club boasts double-digit growth in Walmart+ memberships.
Costco faces fierce competition from retailers that cater to affluent shoppers willing to pay for exclusive perks. The velvet rope strategy responds to this pressure but risks differentiating Costco in ways that damage its unique brand positioning.​
Social Media Erupts
Online reactions split sharply along economic lines. Supporters praise reduced crowding and argue that higher-paying members deserve additional benefits. Critics condemn the policy as elitist, with some reporting that they have canceled their membership.
Member experiences shared on social media range from strong support to significant disappointment. The controversy has generated substantial online discussion and media coverage.​
The 90% Renewal Question
Costco maintains impressive 92.3% renewal rates in the U.S. and Canada, signaling strong overall satisfaction despite controversy. However, the long-term impact of the early access policy on non-Executive member loyalty remains uncertain.
Some members report feeling alienated enough to switch to competitors or downgrade spending. Whether Costco’s decision to prioritize Executive members will alienate its broader base won’t be clear until renewal data emerges.​
Retail’s Future Divide
Costco’s velvet rope strategy exemplifies a broader retail trend toward bifurcation—luxury and discount thriving while the middle collapses.
As wealth inequality grows, retailers are increasingly catering to ultra-wealthy customers, while value seekers trade down. Costco’s decision to stratify access reflects this economic reality but represents a departure from the company’s founding principle: that bulk savings should democratize quality goods for everyone, regardless of economic status.​