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Most stores didn’t really work around anything. Costco performs a credit check when you sign up for a membership. It requires a state ID to sign up for a membe

Most stores didn’t really work around anything. Costco performs a credit check when you sign up for a membership. It requires a state ID to sign up for a membership. Like voter ID requirements, this has impacts on the people who shop there. Previously, they also tied the membership to qualifying for their partnered credit card. It is true that you can pay with cash. Ultimately, I'm trying to explain why Costco shoppers look the way they do. It may affect the bottom line to put up these obstacles, because people who meet these criteria can and do spend more. Walmart only relies ownership of a car to target a richer shopper. Whole Foods and Trader Joe’s, often used for single people or non car owners, locates its stores nonetheless in certain wealthier urban locations. Loyalty cards do not achieve these ends. The knock on effects are immense. Grocery stores, for normal people, are as much about the discounts as seeing your own kind there. That’s not just economic stratification, it’s also the ethnic groceries, some of them really big, expensive item enterprises (like H Mart). These are experiences Amazon cannot provide. You don’t get to see the other Amazon shoppers, and you don’t get a sense of whether Amazon is a “cheap” or “expensive” store. And yet this is precisely an experience people want, just as psychologically important as 1 day shipping. Costco, like Amazon, occupies a valuable psychological niche. The question is if there exist any viable retail that does not.

lol768 7y ago
>Costco controls the kind of shopper that shows up by tying a credit card (ie a credit check) to membership. Sure you don’t have to pay with a credit card, but you need to qualify for a good one to shop there. I don't follow this logic at all. They take Amex and debit cards in the UK - so no Mastercard/Visa credit cards but debits are fine. They also take cash. So, why do you need to be able to qualify for an Amex (the only CC they accept) to shop there? Everyone has a debit card. They're not doing a credit check when you sign up as a member - they don't extend you a line of credit when you shop in their stores as a consumer.
lotsofpulp 7y ago
>Costco controls the kind of shopper that shows up by tying a credit card (ie a credit check) to membership This is not true.
IAmGraydon 7y ago
I’m not sure what you’re talking about. A Costco membership is $60 and you can pay in cash. There’s no credit card needed. You don’t have to sign up for their credit card either, and it’s not really even pushed when you sign up for membership. What gave you the impression that you have to qualify for a credit card to shop there?
- Animats 7y ago
  There’s no credit card needed. Until a few years ago, Costco didn't even take credit cards. They had an in-store ATM if you needed cash.
  - lotsofpulp 7y ago
    This article says they started accepting credit cards 20 years ago: https://www.techradar.com/news/what-credit-cards-does-costco-accept https://www.techradar.com/news/what-credit-cards-does-costco...
  - valleyer 7y ago
    This isn't true. Before a few years ago, they accepted American Express credit cards. (You could also use a debit card at the check-out register.)
    - neltnerb 7y ago
      Before they accepted American Express they only accepted debit and cash. I remember having the American Express card and being excited that I could finally get cash back on Costco purchases and have a credit card vaguely backed by a company I trust.
- karthikb 7y ago
  Until 2016, Costco and Amex had an exclusive partnership. You could pay either in cash or with Amex, usually the Costco Amex tied to your membership card. Now they take any Visa card, and have converted Costco Amex cards to Costco Citi VISA cards.
madengr 7y ago
You don’t need a membership to eat there. Can get the cheap items at the food counter.
- dominotw 7y ago
  how do you get to the food counter though? Don't u need a card to get in?
  - sureshv 7y ago
    Some California Costco’s have outdoor food courts. You can also enter through the standard entrance and tell them you are going to the food court or membership counter. At that point no membership is required to get food. The membership counter/food court and exit are all next to each other at most Costco’s.

lol768 7y ago

>Costco controls the kind of shopper that shows up by tying a credit card (ie a credit check) to membership. Sure you don’t have to pay with a credit card, but you need to qualify for a good one to shop there. I don't follow this logic at all. They take Amex and debit cards in the UK - so no Mastercard/Visa credit cards but debits are fine. They also take cash. So, why do you need to be able to qualify for an Amex (the only CC they accept) to shop there? Everyone has a debit card. They're not doing a credit check when you sign up as a member - they don't extend you a line of credit when you shop in their stores as a consumer.

lotsofpulp 7y ago

>Costco controls the kind of shopper that shows up by tying a credit card (ie a credit check) to membership This is not true.

IAmGraydon 7y ago

I’m not sure what you’re talking about. A Costco membership is $60 and you can pay in cash. There’s no credit card needed. You don’t have to sign up for their credit card either, and it’s not really even pushed when you sign up for membership. What gave you the impression that you have to qualify for a credit card to shop there?

Animats 7y ago
There’s no credit card needed. Until a few years ago, Costco didn't even take credit cards. They had an in-store ATM if you needed cash.
- lotsofpulp 7y ago
  This article says they started accepting credit cards 20 years ago: https://www.techradar.com/news/what-credit-cards-does-costco-accept https://www.techradar.com/news/what-credit-cards-does-costco...
- valleyer 7y ago
  This isn't true. Before a few years ago, they accepted American Express credit cards. (You could also use a debit card at the check-out register.)
  - neltnerb 7y ago
    Before they accepted American Express they only accepted debit and cash. I remember having the American Express card and being excited that I could finally get cash back on Costco purchases and have a credit card vaguely backed by a company I trust.
karthikb 7y ago
Until 2016, Costco and Amex had an exclusive partnership. You could pay either in cash or with Amex, usually the Costco Amex tied to your membership card. Now they take any Visa card, and have converted Costco Amex cards to Costco Citi VISA cards.

madengr 7y ago

You don’t need a membership to eat there. Can get the cheap items at the food counter.

dominotw 7y ago
how do you get to the food counter though? Don't u need a card to get in?
- sureshv 7y ago
  Some California Costco’s have outdoor food courts. You can also enter through the standard entrance and tell them you are going to the food court or membership counter. At that point no membership is required to get food. The membership counter/food court and exit are all next to each other at most Costco’s.