A funny thing happened when I walked into my local Costco store the other day. As I went over to scan my membership card, not one, but two Costco employees came over to wish me a good morning.
It’s not so unusual for store employees to be friendly to customers, and it’s a practice many retailers encourage. What struck me at Costco was that neither employee had to acknowledge me at all.
At this point, I’m a pro at scanning my membership card when I walk into Costco and getting on with my shopping. The fact that I was greeted warmly by a couple of Costco employees really went a long way.
In fact, it’s Costco’s general attitude toward its customers that’s convinced me to keep renewing my membership for roughly 20 years.
And there’s a reason Costco’s renewal rate is 92.2% in the U.S. and Canada and 89.7% worldwide, according to the company’s most recent earnings call. Costco keeps giving members a reason to remain loyal by showing that it puts customers first.
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Costco makes a smart decision members will appreciate
Although it’s easy to argue that Costco isn’t one of those stores people shop at multiple times a week, there are members who rely on Costco for many of their household needs, whether it’s food, cleaning products, or over-the-counter medications.
So any time Costco closes its warehouse club stores, members could find themselves at a loss.
For this reason, Costco aims to close sparingly. But the company also needs to strike a balance between making members happy and keeping employees happy.
Related: Costco quietly lowered prices on key items
As such, it’s common for Costco to close its doors on major holidays. But Costco will not be closing to members on Dr. Martin Luther King Jr. Day, which falls this year on Monday, January 19.
That gives members an opportunity to stock up on the items they need without having to change their shopping plans.
A complete list of days on which Costco closes to members during the year
- New Year’s Day
- Easter Sunday
- Memorial Day
- Independence Day
- Labor Day
- Thanksgiving Day
- Christmas Day
Source: Costco
Costco keeps going out of its way for members
Costco has been making a solid effort to keep members happy in recent years, especially given economic conditions.
Inflation has battered consumers since 2021. And most recently, it was up 2.7% annually, according to December’s Consumer Price Index.
At a time when customers are spending their money more carefully, Costco needs to go the extra mile to get members to keep paying its fees. And the company has definitely stepped up in that regard by introducing new perks and benefits.
Recently added perks for Costco members
- Extended shopping hours for Executive members
Source: Motley Fool - Extra Saturday shopping hours for all members
Source: TheStreet - A monthly $10 Instacart credits for Executive members
Source: Costco - Extra cash back at Costco fuel stations for branded credit-card holders
Source: Citi.com
Of course, none of this should be too surprising, given Costco’s history of treating its members extremely well.
“The best at customer loyalty is Costco,” Michael Lasser, UBS analyst, told CNBC in 2024. “The best way to measure loyalty in the consumer sector is through traffic. And Costco is generating amongst the best traffic right now in the retail sector.”
Costco itself has long acknowledged the importance of making members happy and offering consistently great value.
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“The most important item we sell is the membership card,” Costco CEO Ron Vachris told Fortune in a 2024 interview. “Everything we do supports that transaction.”
Costco’s actions serve as proof that statements like that on the company’s part aren’t just a PR ploy. Rather, they reflect a customer-first attitude that’s allowed Costco to enjoy a world of success at a time when consumers are being choosier.
Maurie Backman owns shares of Costco.
Related: Costco sees major shift in member behavior
