Costco CEO hints at major change members will love

Plenty of retailers claim to care about customers. But Costco actually proves it.

Unlike other retailers, membership fees are a big part of Costco’s revenue. For this reason, the company goes out of its way to continuously examine and enhance the member experience.

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Costco’s return policy, for example, is one of the most generous in all of retail. With few exceptions, customers can bring back any item at any time for a refund, even if it’s been months since the date of purchase.

Costco also strives to offer members the lowest prices possible. To that end, the company is very particular about what it puts on its shelves.

If Costco can’t source an item at a price it’s happy with, the company will either pass or create its own low-cost version under the Kirkland label.

Costco’s free samples are another example of going above and beyond for customers. Granted, part of the goal is to tempt customers to buy more products by letting them try things for free. But it’s still a nice perk you don’t tend to see at other stores.

Costco CEO hints at extended warehouse club hours.

Image source: Brooks Kraft LLC/Corbis via Getty Images

Costco made a big change this year that benefited members

One of the biggest benefits of joining Costco is getting to save money on gas.

Costco is known for having some of the best gas prices in town. And Costco’s gas is not only affordable, but also high in quality.

The Kirkland Signature Gasoline sold at Costco fuel stations has the TOP TIER designation. This means it’s formulated to keep engines clean and lead to better performance.

Earlier this year, Costco made the decision to extend its gas station hours. Now, most Costco fuel stations are open from:

6 a.m to 10 p.m. Monday through Friday
6 a.m. to 8:30 p.m. on Saturdays
6 a.m. to 7:30 p.m. on Sundays

These hours go well beyond normal warehouse club hours so that members can fill up their cars early in the day or later at night.

Not surprisingly, during the company’s most recent earnings call, Costco reported that members started buying more gas once fuel stations began opening earlier and closing later.

Costco hints at expanded store hours

While Costco has a clear plan in place to both retain and attract members, the company is constantly reevaluating its strategy. And during the company’s most recent earnings call, CEO Ron Vachris said that given the great results that came from extending gas station hours, the management team would consider expanding warehouse club hours overall.

“We continue to look at the hours of…operation as well,” he said.

Vachris and other Costco executives know that now more than ever, consumers need access to savings at every turn.

The combination of lingering inflation and tariff threats has a lot of people on edge, and they’re looking for ways to stretch their paychecks as much as possible.

To that end, Costco has pledged to do what it can to shield members from tariffs. During the third quarter of the year, Vachris said that Costco “rerouted many goods sourced from countries with large tariff exposure to our non-U.S. markets.”

But extending warehouse club hours is another way to not only enhance the member experience, but also make it easier for members to access affordable products they need.

Although Costco warehouse club stores tend to be open pretty late during the week, many locations don’t open until 9:30 a.m. or 10 a.m. on weekdays. These hours may be suitable for people who are home during the day, but they’re not particularly worker-friendly.

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Opening earlier could make it possible for more people to do their shopping before heading to work, and it’s certainly a change many members would be happy to see.

Maurie Backman owns shares of Costco.