Costco's Executive Hours: The Data Is In | Fast Five Shorts
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
00:00 - Untitled
00:16 - Impact of Extended Shopping Hours on Costco Members
01:03 - The Transformation of Costco's Shopping Experience
02:28 - Costco's Innovative Membership Strategy
03:10 - Exploring Data Integrity in Operations Management
03:54 - Navigating the Challenges of Costco Shopping
04:19 - Costco's Savvy Strategies
Costco's extra hour for executive members has shifted visits earlier, it appears, According to Placer AI a Placer AI blog post.
Speaker AOur friends at Placer AI Since June 30, 2025, Costco has offered executive members an extra hour to shop at many warehouses.
Speaker AAnd by September, the perk expanded company wide.
Speaker AThe 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.
Speaker AShoppers 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.
Speaker AReportedly, the policy has also improved customer experience without requiring additional staff.
Speaker AAnd is this early data from Placer clearly indicative of early morning shopping being a big win for Costco?
Speaker B100%, I actually think.
Speaker A100%.
Speaker ANo hedge at all.
Speaker BNo, 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.
Speaker BBecause 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.
Speaker BSo 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.
Speaker BI mean they're saying 30 minute shopping trips.
Speaker BThat means you can get in, get what you need and get out.
Speaker BAnd that changes what Costco is for me.
Speaker BAnd as a grocery retailer, as a mass retailer, in the whole scheme of like do I go there today?
Speaker BNo, 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.
Speaker BSo I think this is a huge move for Costco.
Speaker BAnd best of all, they don't have to do anything with employees.
Speaker BThey're not adding any overhead.
Speaker BThey're just collecting more like this additional subscription revenue and I would certainly pay for it.
Speaker BLike I, I think people are going to.
Speaker BRight.
Speaker BSo 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.
Speaker BBut I'm, I'm interested to see what this does for Costco's Business.
Speaker BBut are.
Speaker BWould you pay extra for this membership?
Speaker BAre you going to go to Costco without having to deal with any other people?
Speaker AOh, I don't know.
Speaker AI don't know if I'd pay extra for it, but I think, you know, if.
Speaker AIf this was important to me, I would pay extra for it.
Speaker AYou know, I think.
Speaker AKnow what, What I got thinking about was the line from Jaws, I'm going to need a bigger boat.
Speaker AI think if people are doing what you're saying, they're going to need a bigger fridge.
Speaker ABut, but, yeah, I think I'm with you.
Speaker AI mean, I was trying to think of, like, why would this data be wrong in any way, shape or form?
Speaker AOr what could we be missing?
Speaker AMaybe not wrong, but, like, what could we be missing in the data?
Speaker AAnd it's really hard to say.
Speaker ALike, I think I'm with you.
Speaker AIt's like 100%.
Speaker AIt seems like a good move.
Speaker AIt's.
Speaker AIt's a total case study in operations management.
Speaker AIt feels like something I would have studied and, and SAT and debated in, like, the Harvard Business School back in the day.
Speaker ALike, like you said, the staff is already there.
Speaker ACostco has a known congestion problem.
Speaker AYou have people that are paying more for this executive membership, so they want to.
Speaker AEveryone wants to get out with less hassle.
Speaker ALike, that's kind of a universal truth, right?
Speaker ANobody wants to.
Speaker ANobody wants to, you know, deal with the parking lots and the amount of people that are Costco.
Speaker BI have to do, like a sanity break, like, in my car, like a meditation before I go in there.
Speaker BLike, okay, this is.
Speaker ANo, it's like the worst of passive aggressive Minnesotans.
Speaker AWhen you go to.
Speaker AWhen you go to the Costco parking lot, it's terrible.
Speaker ASo, 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.
Speaker AThey're not the ones that need a lot of help.
Speaker AThey're not the ones that are going to complain.
Speaker AThey got a.
Speaker AThey're on a mission.
Speaker AThey want to get in and out.
Speaker ASo, So I think it's incredibly.
Speaker AI don't use this word very often, but I think it's incredibly savvy by Costco and not surprised it's working.
Speaker AI mean, that's the fundamental thing here.
Speaker BI 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.
Speaker ASo it just shifts.
Speaker AIt just shifts it to a different time of day.
Speaker BRight, Right.
Speaker AThat's a big issue, though, potentially.
Speaker AThey got to watch for that.