This segment from the Omni Talk Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Mirakl, Ocampo Capital, Infios, and Quorso, analyzes early data from Costco's executive membership early access hours.

Since implementing the extra hour of shopping from 9-10am, Placer AI data shows visits are shifting earlier, trips are becoming more efficient (30-45 minutes vs 45-60 minutes), and congestion during peak hours has decreased. Anne argues this transforms Costco from a once-a-week stock-up trip into a quick daily errand destination for millennials and young families, while Chris calls it a masterclass in operations management.

With no additional staff required and executive members willing to pay for the perk, is this one of the smartest retail moves of 2025? Could this become the airport lounge problem where everyone upgrades? Chris and Anne break down the implications.

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#Costco #ExecutiveMembership #RetailStrategy #GroceryShopping #PlacerAI #RetailOperations #CustomerExperience #RetailInnovation

Costco's extra hour for executive members has shifted visits earlier, it appears, According to Placer AI a Placer AI blog post.

And by September, the perk expanded company wide.

The additional morning the additional morning hour appears to have encouraged some executive members to shift their trips earlier in the day, which in turn has reduced traffic concentration during late morning and afternoon peaks.

Shoppers using early access also seem to shop more efficiently, with Costco seeing a rise in 30 to 45 minute visits and a drop in 45 to 60 minute visits following the implementation of the extended hours.

Reportedly, the policy has also improved customer experience without requiring additional staff.

And is this early data from Placer clearly indicative of early morning shopping being a big win for Costco?

100%, I actually think.

100%.

No hedge at all.

No, I think this is another big headline because I think this has changed the Costco shopping experience from a once a week or once a month stock up trip to a daily or multiple times per week trip.

Because if you look at the data from Business Insider, one of the biggest demographics shopping during this time, this executive time from 9 to 10am is, is millennials and younger families.

So this means that going there just to grab milk, eggs, diapers, whatever you need on the way to work, you know, you know, as your morning errand run, like now, this is going to be as quick for people as a trip to Walmart or to Kroger to get those things.

I mean they're saying 30 minute shopping trips.

That means you can get in, get what you need and get out.

And that changes what Costco is for me.

And as a grocery retailer, as a mass retailer, in the whole scheme of like do I go there today?

No, I think it's completely out of the consideration set for people because of the time and the traffic that you have to deal with.

So I think this is a huge move for Costco.

And best of all, they don't have to do anything with employees.

They're not adding any overhead.

They're just collecting more like this additional subscription revenue and I would certainly pay for it.

Like I, I think people are going to.

Right.

So to me this is a genius move by Costco and I'm really excited to see like in the next six months even hopefully Placer will put some more data out for us.

But I'm, I'm interested to see what this does for Costco's Business.

But are.

Would you pay extra for this membership?

Are you going to go to Costco without having to deal with any other people?

Oh, I don't know.

I don't know if I'd pay extra for it, but I think, you know, if.

If this was important to me, I would pay extra for it.

You know, I think.

Know what, What I got thinking about was the line from Jaws, I'm going to need a bigger boat.

I think if people are doing what you're saying, they're going to need a bigger fridge.

But, but, yeah, I think I'm with you.

I mean, I was trying to think of, like, why would this data be wrong in any way, shape or form?

Or what could we be missing?

Maybe not wrong, but, like, what could we be missing in the data?

And it's really hard to say.

Like, I think I'm with you.

It's like 100%.

It seems like a good move.

It's.

It's a total case study in operations management.

It feels like something I would have studied and, and SAT and debated in, like, the Harvard Business School back in the day.

Like, like you said, the staff is already there.

Costco has a known congestion problem.

You have people that are paying more for this executive membership, so they want to.

Everyone wants to get out with less hassle.

Like, that's kind of a universal truth, right?

Nobody wants to.

Nobody wants to, you know, deal with the parking lots and the amount of people that are Costco.

I have to do, like a sanity break, like, in my car, like a meditation before I go in there.

Like, okay, this is.

No, it's like the worst of passive aggressive Minnesotans.

When you go to.

When you go to the Costco parking lot, it's terrible.

So, like, yeah, so, like, and, and, and the other thing, too, is those people are going to be easier for the store employees to manage, too, because they're just getting in and out.

They're not the ones that need a lot of help.

They're not the ones that are going to complain.

They got a.

They're on a mission.

They want to get in and out.

So, So I think it's incredibly.

I don't use this word very often, but I think it's incredibly savvy by Costco and not surprised it's working.

I mean, that's the fundamental thing here.

I think the key thing, if you got me thinking, though, if they are going to watch out for something, I think they have to avoid, like, the clear problem at the airport, where suddenly everyone has this executive membership and I'll see about that purpose, too.

So it just shifts.

It just shifts it to a different time of day.

Right, Right.

That's a big issue, though, potentially.

They got to watch for that.