Recently, Costco employees and customers have reported that the lack of signage in the aisles of its more than 620 stores is a deliberate strategy, even comparing it to a casino, to encourage impulse buying. In response to these criticisms, CEO Ron Vachris and CFO Gary Millerchip have defended the company’s management, highlighting that changes such as exclusive access one hour earlier for Executive members (with a $130 fee) compared to Gold Star members ($65) since last August 31, along with new pre-scan technologies at checkout, aim to optimize customer flow.
Despite these technological advancements and operational adjustments, the chain surprised everyone by announcing the halt of its expansion plan, which had foreseen the opening of 35 new stores by 2026.
Design or manipulation?
The controversy over the interior design of Costco’s warehouses erupted on the social media platform Reddit when a customer posted the following question: “Is it just me or does anyone else hate the lack of aisle labels? I like the usual store that’s like ‘groceries’ or ‘pasta and noodles’ or ‘kids’ clothing.’ With Costco, if I want something, I have to guess which aisle it’s in”. Another user responded, “Yes, they organize it like a casino so you don’t know where you are and need to walk through the entire store.” It was then that an employee also stated that Costco is “intentionally partially a treasure hunt”.
What does Costco say about it?
In response to this uproar, the media outlet The US Sun contacted the company to get its opinion, but the response was rather ambiguous. Although it wasn’t clear on this matter, Ron Vachris, the CEO of Costco, did refer to two other changes the company has implemented to improve the user experience. On one hand, he mentioned the extended hours for consumers who pay $130 annually for their Executive membership, who have more benefits, including shopping availability one hour before other users since August 31.
However, members who pay $65 annually for the Gold Star membership expressed their discontent about this difference in privileges between memberships, to which the company responded that it helps prevent too many people from crowding at the same time and ensures a smoother customer flow.
Another improvement is related to the technology that has been implemented, which according to the CEO, allows them to “offer a seamless experience that builds trust and loyalty with our members.” This technology refers to updates on the company’s website and the new in-store payment technology, including the ability for employees to scan customers’ online purchases even before they reach a self-checkout kiosk. This way, the customer would only need to scan their membership card and make the payment. Another topic Vachris mentioned was the U-turn regarding the opening of 35 new stores planned for 2026, which has ultimately been put on hold.
Frequently asked questions
Why don’t Costco aisles have labels?
According to customers and workers, It’s a “treasure hunt” strategy to make members walk through the entire store, encouraging impulse purchases.
What time advantage do Executive members have?
Since August 31, those who pay the $130 fee can enter one hour earlier than Gold Star members to avoid crowds.
How does the new fast checkout system work?
Employees scan the products in line so that the customer only has to swipe their card at the register and pay directly.