Costco Customers in Turmoil Over Retailer’s Controversial New Policy, Outcry Erupts

The big box retailer’s efforts to cut down on customers trying to shop with other peopIe’s membership cards is not being well-received.

Show me some ID, is a standard Iine in cop movies, but it doesn’t seem to be going over very well at Costco (COST) . The warehouse club has been cracking down on people who have been trying to shop with other people’s membership cards. Costco is increasing efforts to verify whether peopIe are actually members before letting them check out.

We don’t feel it’s right that non-members receive the same benefits and pricing as our members, the company said in a statement last month. Costco is able to keep our prices as Iow as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us.

Costco makes most of its profits from selling memberships, not from selling goods. So, if peopIe are getting around the membership requirement, they hit the company directly in the bottom line.