Costco's controversial policy change officially in effect: What to know

Costco's executive member shopping hours in effect

Costco's extended hours for executive members will go into effect across all stores following the Labor Day weekend.

LOS ANGELES - Costco's new policy granting executive members early access to its stores, a perk dubbed the "VIP hour," is now being strictly enforced nationwide following the end of a grace period on Aug. 31.

Policy change in effect

What we know:

Costco has implemented a new policy that grants its executive members exclusive early access to stores. 

This "VIP hour" allows only executive members to shop from 9 a.m. to 10 a.m. on weekdays and from 9:30 a.m. to 10 a.m. on Saturdays. 

The doors are then opened to all other members at 10 a.m. 

Beginning Sept. 1, employees will now enforce the rule and non-executive members who try to shop early may be denied entry.

New rule will be ‘strictly enforced’

The backstory:

In June, Costco first introduced the policy change with a perk for customers with the more expensive Executive Membership. 

Since June 30, executive members have had an exclusive hour-long shopping window before other customers are allowed into stores. 

There was a grace period on the new rule, which ended on Aug. 31. 

Officials said even though the rule has been in effect for a month, it was not strictly enforced, with some stores even displaying "grace period" signs. 

Membership tiers and perks

By the numbers:

Costco's executive members pay $130 a year for their membership, which also includes annual rewards and additional benefits, including a $10 monthly credit on eligible online orders over $150, according to Costco's website.

Gold Star and Business memberships are $65 per year.

Business Insider reports that a little less than half of all Costco members pay for the executive membership, but these customers represent 73% of the company's sales.

Backlash from customers

The other side:

The new policy has been met with a backlash from some customers with less expensive memberships. These customers now have to wait for the exclusive shopping hour to end before they can enter the stores.

When the company announced the policy on its Instagram account, some social media users also expressed displeasure, with one customer writing, "it should be for all members."

Why you should care:

The new early access policy is intended as an additional perk for executive members, offering them a less crowded shopping experience. 

However, it also directly affects all other members by making them wait until the "VIP hour" is over before they can start shopping. 

This means those with cheaper memberships must now wait until the exclusive members have had their pick before they are allowed through the doors.