Costco Cracks Down On Non-Members Entering The Store: Will Sam's Club and BJ's Follow Suit?

Costco Wholesale Corporation COST will shake up its entrance policies to crack down on non-members slipping inside the store.

What Happened: The Issaquah, Washington-based company released a statement elaborating on the introduction of membership scanners.

“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner. Guests must also be accompanied by a valid member for entry.”

Visitors who do not have a photo on their Costco card must present another form of photo ID to enter the store.

Membership fees, required to enter the store, are a key part of Costco’s business model and comprise a good chunk of its profits. Previously, members would quickly show their cards to a Costco attendant to enter.

What About Competitors?: Walmart Inc.’s WMT Sam’s Club and the East Coast BJ’s Wholesale Club Holdings Inc BJ are Costco’s two largest warehouse retail competitors.

When asked about Sam’s Club’s membership enforcement, a spokesperson touted the brand’s convenient entrance and exit technology.

“While some retailers are making it harder to shop, we know our members come to Sam's Club for a more convenient experience,” the spokesperson told Benzinga. “So, we've been very intentional about introducing technology that reduces friction throughout the entire shopping trip like digital membership cards, payment with Scan & Go, and our seamless exit that eliminates waiting to leave the club.”

The spokesperson did not elaborate on whether Sam’s Club is preparing to modify its policy.

BJ’s did not respond to Benzinga’s request for comment.

The company offers memberships similar to Costco but at a slightly lower price point. Unlike Costco and Sam’s Club, BJ’s still offers one-day passes to non-members.

Also Read:

• Costco Is In Prime Stock Split Territory: Will It Follow Walmart’s Lead?

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