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

Editor’s note: This story has been updated with additional comment from Sam’s Club.

Costco Wholesale Corporation (NASDAQ: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 (NYSE:WMT) Sam’s Club and the East Coast BJ’s Wholesale Club Holdings Inc (NYSE: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.”

Sam’s Club has not made any changes to its processes and has no plans to do so in the immediate future, the spokesperson told Benzinga.

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.

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

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