Costco has earned the loyalty of millions of members in the United States thanks to their low prices and exceptional customer service. The chain is famous for allowing returns with almost no time limit and for their strict quality control. However, even a company with such a good reputation can make decisions that generate controversy.
In recent weeks, Costco has brought back an old benefit for their Executive members: opening their doors 30 minutes earlier for them. This extra, which had disappeared years ago, returned at the end of June to please those who pay the $130 annual fee for this membership compared to the $65 for the basic plan. However, the measure has caused discontent among employees, who complain about having more pressure and less time to prepare the store.
This is the Costco benefit that has sparked controversy
The chain decided to reward their most loyal customers with early access to their stores, an exclusive advantage of the Executive membership. Members at this level already enjoy a 2% cashback on purchases, an incentive for those who spend a lot. Now, with an extra half hour of shopping before the general public, the company aims to strengthen their premium offering.
It is estimated that millions of customers in the United States choose the Executive plan despite it costing twice as much. Costco defends the change by arguing that this way they reward loyalty and enhance the shopping experience. However, the benefit hasn't gone unnoticed by the staff, who see it as a problem rather than an improvement.
Some workers warn that schedules haven't been adjusted nor have teams been reinforced to handle the earlier opening. "It's going to be a lot of fun every morning in merchandising, with no shift or timing changes, you just have to do it much faster," wrote an employee on Reddit. The lack of planning has fueled tensions amid a hiring freeze.
A change that is causing discontent and internal tensions at Costco
The discontent isn't limited to a handful of messages on social media, another worker protested about the little time to adapt. "Management announces this with three weeks' notice, in the middle of a hiring freeze and cutting hours, Costco is no longer the same company as before." The complaints reflect the fear that the workload will increase without compensation.
In addition, there is concern about possible chaos at the entrance, with customers who don't pay the Executive fee trying to sneak in early, according to reports in The Street. The result would be more tension for the staff, who already handle large volumes of shoppers. For Costco, which prides itself on their customer service, risking employee satisfaction could be a strategic mistake.
This isn't the only conflict the chain is facing; recently, Costco was accused of withholding payments to unionized drivers in the state of Washington, which could lead to strikes. If labor problems worsen and many employees decide to leave, the impact on customer service would be evident. Faced with that possibility, the company could be forced to reconsider their strategy with the Executive membership, even if that disappoints millions of loyal shoppers.