Costco embraces the two-tier economy with its new early shopping perk

It can be easy for consumers to feel like we now live in a two-tier economy: one geared toward showering the wealthy with perks, extras, and exclusive access, and the other for us normies. But one place you might not expect that is at Costco. Which might explain the mixed reaction to the recent news that, starting June 30, Costco U.S. locations that now open at 10 a.m. will open an hour earlier Sunday through Friday—but only for certain people. Holders of its Executive Member card, which at $130 a year costs double the standard Gold Star membership fee, are allowed into the store early. (Those fees are up from $120 and $55, respectively, as of last year.) And locations that already open at 9 will now also make that first hour Executive only. (Saturdays it’s just for Executive members for the first half hour of operation.) “All members will be welcome to shop starting at 10 a.m. Monday through Friday and Sunday, and at 9:30 a.m. Saturday,” an announcement on Instagram explained. Some responses to that post suggested that this new Executive perk came across like second-tier treatment for devoted Costco shoppers. “Why reduce the value of a regular membership for US members?” one asked. Extended hours “should be for all members,” another argued. “As members we all pay to shop there,” a third added. “Inconveniencing your loyal customers for 30 mins to an hour is actually not cool.” It might seem counterintuitive that a brand so fundamentally tied to bargain hunting, volume discounts, and savvy shopping would have an elite membership level at all. While Costco’s product mix has come to include items targeting higher-end consumers—from fancy champagne to Rolex watches to actual gold bars—the Costco image is tied to the idea that finding a great deal is the ultimate equalizer. The appeal of, say, the chain’s famous $1.50 hot dog cuts across class lines (at least symbolically). Costco has long enjoyed a broad and loyal fan base, and over the past year its reputation has seemed particularly virtuous. Its in-house Kirkland brand, already popular, has become arguably even more appealing as shoppers contend with tariff-war uncertainties. More broadly, Fast Company recently named CEO Ron Vechris “Visionary of the Year” for standing by diversity, equity, and inclusion policies that the company believes are good for business. As Target and other rivals have been dinged for seeming to cave to political pressure, Costco has gotten more popular. Its sales were up 8% in the most recent quarter, just shy of $61 billion and ahead of analyst estimates. But that includes its Executive tier: It turns out that a remarkable 47% of Costco members pay extra for the black-card Executive level. This currently entails a 2% reward on qualified purchases—meaning that it’s actually possible to earn back the extra fee cost if you spend enough—and discounts on some Costco services and Costco Travel deals. In addition to the exclusive shopping time, Costco is also adding a $10 credit for certain home delivery orders (a segment the chain has been pushing, including an Instacart partnership) for Executive members. Maybe more to the point, Costco rival Sam’s Club’s elite tier already includes exclusive shopping time (and Costco itself actually had an earlier version of the perk that was discontinued in the peak pandemic era). And notably, Costco has said its Executive customers account for about 73% of its global sales. In other words, given what those elite, black-card-carrying customers contribute to Costco’s business, maybe they deserve more special treatment. That’s certainly how some reacted to that Instagram post announcing the new hours. “Nice added benefit to those with the Executive membership,” wrote one member. “Hope to see more distinguishing benefits down the road.” Another added: “Finally, something exclusive for Executive members.” Others sounded a more appreciative note. “Fresh morning hot dogs,” one wrote, “for me and my black card!” Such are the privileges of the Costco elite.

Jun 27, 2025 - 11:29

Costco embraces the two-tier economy with its new early shopping perk

It can be easy for consumers to feel like we now live in a two-tier economy: one geared toward showering the wealthy with perks, extras, and exclusive access, and the other for us normies. But one place you might not expect that is at Costco.

Which might explain the mixed reaction to the recent news that, starting June 30, Costco U.S. locations that now open at 10 a.m. will open an hour earlier Sunday through Friday—but only for certain people. Holders of its Executive Member card, which at $130 a year costs double the standard Gold Star membership fee, are allowed into the store early. (Those fees are up from $120 and $55, respectively, as of last year.) And locations that already open at 9 will now also make that first hour Executive only. (Saturdays it’s just for Executive members for the first half hour of operation.) “All members will be welcome to shop starting at 10 a.m. Monday through Friday and Sunday, and at 9:30 a.m. Saturday,” an announcement on Instagram explained.

Some responses to that post suggested that this new Executive perk came across like second-tier treatment for devoted Costco shoppers. “Why reduce the value of a regular membership for US members?” one asked. Extended hours “should be for all members,” another argued. “As members we all pay to shop there,” a third added. “Inconveniencing your loyal customers for 30 mins to an hour is actually not cool.”

It might seem counterintuitive that a brand so fundamentally tied to bargain hunting, volume discounts, and savvy shopping would have an elite membership level at all. While Costco’s product mix has come to include items targeting higher-end consumers—from fancy champagne to Rolex watches to actual gold bars—the Costco image is tied to the idea that finding a great deal is the ultimate equalizer. The appeal of, say, the chain’s famous $1.50 hot dog cuts across class lines (at least symbolically).

Costco has long enjoyed a broad and loyal fan base, and over the past year its reputation has seemed particularly virtuous. Its in-house Kirkland brand, already popular, has become arguably even more appealing as shoppers contend with tariff-war uncertainties. More broadly, Fast Company recently named CEO Ron Vechris “Visionary of the Year” for standing by diversity, equity, and inclusion policies that the company believes are good for business. As Target and other rivals have been dinged for seeming to cave to political pressure, Costco has gotten more popular. Its sales were up 8% in the most recent quarter, just shy of $61 billion and ahead of analyst estimates.

But that includes its Executive tier: It turns out that a remarkable 47% of Costco members pay extra for the black-card Executive level. This currently entails a 2% reward on qualified purchases—meaning that it’s actually possible to earn back the extra fee cost if you spend enough—and discounts on some Costco services and Costco Travel deals. In addition to the exclusive shopping time, Costco is also adding a $10 credit for certain home delivery orders (a segment the chain has been pushing, including an Instacart partnership) for Executive members.

Maybe more to the point, Costco rival Sam’s Club’s elite tier already includes exclusive shopping time (and Costco itself actually had an earlier version of the perk that was discontinued in the peak pandemic era). And notably, Costco has said its Executive customers account for about 73% of its global sales.

In other words, given what those elite, black-card-carrying customers contribute to Costco’s business, maybe they deserve more special treatment. That’s certainly how some reacted to that Instagram post announcing the new hours. “Nice added benefit to those with the Executive membership,” wrote one member. “Hope to see more distinguishing benefits down the road.” Another added: “Finally, something exclusive for Executive members.” Others sounded a more appreciative note. “Fresh morning hot dogs,” one wrote, “for me and my black card!” Such are the privileges of the Costco elite.