Costco releases new technology system for shoppers

As the world of retail continues to evolve with technological advancements, Costco, the wholesale giant known for its bulk-buying benefits, is not one to lag behind.

With a relatively modest footprint of 16 outlets across Australia, compared to its massive presence in the US and Canada, Costco has nonetheless carved out a niche for itself among Aussie shoppers who love a good bargain on oversized products.



Since its first Australian store opened in Melbourne in 2009, Costco has seen a steady climb in popularity, expanding to cities including Sydney, Brisbane, Adelaide, Canberra, and Perth.

Members of the discount heavyweight have enjoyed access to a vast array of products at competitive prices, but new measures to ensure that those benefits remain exclusive to paying members accompany the perks of membership.



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Costco launched new membership scanners to prevent non-members from entering stores. Credit: @snackreviews_aus / TikTok


In a move that's stirring up conversation among its customer base, Costco has introduced high-tech face scanners at the entrance of its stores.

This new system is designed to prevent the misuse of shared membership cards, a practice that has been a thorn in the side of the membership-based retailer.

While Costco has traditionally checked photo identification upon entry, the new scanners are set to streamline this process, making it quicker and more efficient for both staff and shoppers.

The implementation of this technology has not been formally addressed by Costco in an official statement, but a representative confirmed that checking photo ID has always been part of their in-store protocol.

The face scanners are an enhancement to this existing system, aimed at cracking down on the sharing of membership cards.



For those looking to join the Costco club, membership options are straightforward. The basic package costs $64 per year, while the 'executive' tier is priced at $130 annually.

Footage of the new scanners appeared on social media, displaying a sign cautioning that individuals who don’t present photo ID will be sent ‘to the membership counter’ to ‘have your picture added’.

A Melbourne resident noted that this system has been in use in the US for a while, and now ‘it's finally Australia's turn’.

‘They’re located at the entrance, and you scan your membership card as you walk in,’ the shopper said.

‘The membership photo will display on a screen to the staff member to check it matches. So make sure you’re using your own card and that it’s active.’



The reaction to the introduction of face scanners has been mixed, with some shoppers expressing their discomfort with the technology on social media.

‘Costco needs to get a grip,’ one person said.

‘Not going to a shop that makes you pay to shop,’ another announced.

‘Costco needs to calm down,’ a third said.

Despite these sentiments, Costco's strong sales figures in Australia, boasting around $3 billion in 2022 and an impressive $4.4 billion in 2023, suggest that the retailer's appeal remains robust.

Costco's commitment to meeting customer demand is evident in its ongoing expansion, which includes not only new physical stores but also plans to roll out grocery delivery options, aligning with services offered in other countries.

You can watch @snackreviews_aus’ video below:


Credit: @snackreviews_aus / TikTok

Key Takeaways

  • Costco is implementing face scanners at store entrances in Australia as part of a crackdown on non-members using shared membership cards.
  • The new technology speeds up the process of verifying membership through photo ID, which is a requirement for customers entering Costco stores.
  • Membership options for Costco in Australia include a basic package for $64 per year or an 'executive' option for $130 annually.
  • Despite having a smaller number of stores in Australia compared to other retailers, Costco remains popular for its bulk-buying format and has seen strong sales, with plans for further expansion and grocery delivery options.
Are you a Costco member who's experienced the new face scanners? Do you welcome the added security, or does it make you think twice about renewing your membership? Share your stories and opinions with us in the comments below.
 
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