Revised hours at Costco now enforced: Impact on members explained

Costco Wholesale Corporation (COSTCO WHOLESALE CORP.), with a current stock price of 938.82 (as of last update), is one of several retail giants adapting its offerings for higher-income customers. This shift in strategy is influenced by the growing gap between wage growth for higher- and lower-income households, according to David Tinsley, senior economist for the Bank of America Institute.

In response to these wage and spending trends, Costco is extending shopping hours for its elite members. Executive members will now have a private, hour-long shopping window before the store opens to other members. The extended shopping hours are taking effect at all Costco clubs this week.

The extended hours for executive members are from 9 a.m. to 10 a.m. on weekdays and Sundays, and from 9 a.m. to 9:30 a.m. on Saturdays. Gold Star and Business members can start shopping at 10 a.m. on weekdays and on Sunday, and at 9:30 a.m. on Saturdays.

Costco's food courts, optical centers, and other ancillary departments will participate in the extended shopping hours. However, it's worth noting that the pharmacies will remain closed on Sundays.

The move to extend shopping hours for higher-income customers is part of a broader trend in the retail industry. Retailers are targeting higher-earning customers to capitalise on their increased spending.

As of the end of the third quarter, Costco boasts 37.6 million paid executive memberships. The exact individuals responsible for introducing extended store hours for higher Costco members or for awarding bonuses to top managers based on achieving diversity, inclusion, and environmental and social responsibility goals at Costco remain unnamed.

Costco first revealed plans to introduce extra shopping time for executive members in June. The company has not disclosed whether similar measures will be implemented for other customer tiers.

According to Tinsley, spending growth for higher- and middle-income households is outpacing lower-income households. This widening gap in wage growth is a significant factor influencing retailers' strategies, as they seek to cater to the spending habits of their customer base.