Costco’s “RED Carpet”—MATH Behind the Move?

Costco’s new perk for Executive Members is ruffling feathers and stirring curiosity—just how exclusive are these benefits?

At a Glance

  • Starting June 30, 2025, Costco is restricting its 9 a.m. early shopping hour exclusively to its Executive Members.
  • The move is a strategic effort to reward the company’s most valuable customers and incentivize upgrades to the premium tier.
  • Executive Members make up less than half of Costco’s membership but account for nearly 75% of all sales.
  • The strategy mirrors a long-standing perk offered by rival Sam’s Club to its premium members.

An Exclusive “Red Carpet” for Top Members

Costco is rolling out the red carpet for its most loyal customers. Starting Monday, June 30, 2025, the warehouse giant will be restricting its 9 a.m. to 10 a.m. early shopping hour exclusively to its Executive Members. The move is designed to provide a more relaxed, less crowded shopping experience for the members who pay for the company’s premium tier.

“Our U.S. locations that currently open at 9 am will transition June 30th to limiting access to Executive Members only,” Costco confirmed in a statement. The change affects most of the company’s U.S. warehouses.

The Math Behind the Move

The new policy is a clear and calculated business strategy aimed at rewarding—and growing—Costco’s most valuable customer base. An Executive Membership costs $120 per year, double the price of a standard $60 Gold Star membership, and its key benefit is a 2% annual reward on most purchases.

The value of these members to Costco’s bottom line is immense. According to Costco CFO Gary Millerchip, as reported by Axios, Executive Members now make up more than 47% of the company’s paid memberships but account for a staggering 73.1% of all sales globally. By offering this exclusive early-access perk, Costco is providing a powerful new incentive for standard members to upgrade.

A Play from a Rival’s Book

The new strategy takes a page directly from the playbook of Costco’s chief rival, Sam’s Club. The Walmart-owned warehouse club has long offered early shopping hours as a key benefit for its higher-tier “Plus” members. Costco’s move is seen by retail analysts as a direct competitive response designed to protect its most important customer segment.

The early-access perk is part of a broader push under CEO Ron Vachris to “improve the member experience.” As reported by Fox Business, the company is also testing new “Scan & Go” technology to speed up checkout lines and continues to use its famously low gas prices to drive traffic and loyalty.