Costco is turning up its expansion rate in Australia. Picture: Lachie Millard
As Costco’s expansion plans across Australia gather pace, more and more shoppers are being exposed to the US retail giant’s unique rules – and being caught out by them.
The US chain currently has 15 stores operating across Australia but recently revealed its plans to open an additional 20 in the next five years.
Two new warehouses will open next year in Victoria and Western Australia, with a focused search underway for additional sites in North and South Sydney, Perth, and Adelaide.
Significantly, Costco is also planning its inaugural stores in Tasmania and Geelong, marking a strategic push into new markets.
This accelerated expansion is driven by strong financial performance, with Costco’s $0.5 billion profit last financial year surpassing Aldi’s $499.2 million.
But more stores means more new shoppers grappling with some of the strict Costco rules that sets the business apart from other traditional supermarkets in Australia.
Seasoned Costco shopper and Channel 9 journalist Jo Abi revealed recently even she was still being caught out by Costco’s rules.
Abi said recent changes to Costco’s membership cards meant she was turned away from her local Costco in Sydney’s Marsden Park earlier this year.
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Jo Abi recently learned the hard way how to set up her digital Costco membership. Picture: Nine
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“When I attempted yet another ‘pop in’ I learned a very hard lesson about how strict Costco is when it comes to their membership rules,” Abi wrote.
“I decided not to bring my handbag with me for my trip to Costco; in fact, I’ve been leaving my handbag behind for most shopping trips because these days everything I need is on my phone.
“Except, my Costco membership card was in my purse that was in my handbag, and I hadn’t yet set up my digital Costco membership card on the app.”
Costco issues membership cards that start at $65 per year and customers can’t enter without it.
Abi said her belief she could simply set up her digital membership card on the spot was quickly dispelled.
“I’d already downloaded the Costco app, so I thought it would be really easy to sign in and access my digital membership card. I expected it would be a digital version of the card I already had, as this had been my experience with other digital membership cards,” she said.
“Except Costco does things differently, and I was given a reminder of just how strict Costco membership rules can be while standing in the carpark trying to set up my digital membership card.
“After signing into the app, I had to take a new photo which uploaded directly into the Costco app. Once that was uploaded, it said my digital membership card was “pending” and I’d have to go to the membership desk to “verify” it.”
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Costco members also need to scan into warehouses now rather than simply flashing your card at staff. Picture: Nine
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Abi eventually gave up after realising she would need other forms of photo identification to help verify her digital Costco membership – photo identification that was at home along with her physical Costco card.
“While driving back home it did occur to me that my membership might be flagged while entering the warehouse. These days you have to scan your membership card whereas previously you simply showed it to the staff member,” she said.
“Perhaps my ordeal had resulted in a flag, and I’d have to go back to the membership desk to continue verifying my digital ID before I could even go shopping?
“It turns out, not. I was able to enter the store with my physical card and get my shopping done.
“I then verified my digital ID on my way out of the warehouse which was easy enough to do as the membership desk is right near the exit, and by then I was halfway through one of the kiosk’s choc chip cookies and was in a much better mood.”
OTHER COSTCO RULES
The transition from physical cards to digital memberships isn’t the only rule catching shoppers out.
A raft of other entry and purchasing rules exist to prevent customers sneaking into warehouses without memberships and benefiting from the Costco offering.
Store entries have been upgraded so shoppers scan in using their membership details rather than simply flashing the card at staff
Costco memberships in Australia are non-transferable and require a photo ID to prevent family and friends borrowing cards to access warehouses.
Members are allowed two guests when visiting Costco but it is only the cardholder who can actually make purchases.