7 Big Changes American Costco Shoppers Will See in 2026

Digital scanners now guard the gateway to Costco’s legendary $1.50 hot dog and soda combo. Members across the United States are encountering new membership verification technology at food court counters, ending decades of accessible dining for non-members.

The same scanners that now greet shoppers at warehouse entrances have migrated to food service areas, transforming one of retail’s most iconic budget meals into an exclusive member-only privilege.​

Breaking Point: When Free Access Became History

The shift represents Costco’s most aggressive membership enforcement strategy in company history, affecting millions of shoppers who previously accessed food courts without warehouse entry.

Reddit users first spotted inactive scanners at select locations in November 2025, signaling the impending change. While member-only food court policies existed previously, enforcement remained inconsistent across Costco’s 617 U.S. locations until now.​

Seven Transformative Changes Reshape the Costco Experience

The food court restriction marks just one of seven major operational changes Costco is implementing throughout 2026. These modifications span store formats, checkout technology, pharmacy services, product offerings, employee compensation, and membership enforcement.

Together, they represent the warehouse retailer’s most comprehensive transformation since introducing Executive memberships, fundamentally altering how 74.5 million cardholders interact with the brand.​

Change #1: Food Court Access Restricted to Members Only

Starting in 2026, membership verification scanners at food courts nationwide are making Costco’s $1.50 hot dog combo exclusively available to paying members. Digital scanners identical to those at warehouse entrances now require membership card verification before placing orders.

This marks the definitive end of an era when non-members could purchase food court items without full warehouse access.​

Change #2: Revolutionary Non-Traditional Store Formats

Costco will debut its first standalone gas station in Mission Viejo, California, this spring, expanding beyond traditional warehouse operations. This unprecedented format signals willingness to experiment with alternative configurations while maintaining core value propositions.

Simultaneously, the company announced aggressive Business Center expansion targeting Canadian markets, where earlier hours and bulk-focused inventory serve commercial clients seeking quantities exceeding standard warehouse offerings.​​

Change #3: Ambitious Expansion With 35 New Warehouses

The warehouse giant’s fiscal 2026 expansion includes 35 new locations, though five represent relocations rather than entirely new markets. This aggressive rollout maintains momentum from 2025, when Costco opened 27 stores worldwide.

The expansion encompasses both domestic and international territories, strengthening Costco’s physical footprint amid intensifying competition from Amazon and discount retailers like Aldi.​

Change #4: Checkout Revolution With Scan-and-Go Technology

Every U.S. Costco warehouse will receive scan-and-go technology in 2026, allowing members to scan items using the mobile app while shopping. Members process payments digitally, with employees verifying purchases by scanning on-screen receipts at exits.

CEO Ron Vachris emphasized innovation priorities, stating, “Our digital vision at Costco is to deliver a seamless experience that builds trust and loyalty with our members”.​​

Pre-Scanning Systems Target Queue Frustration

Beyond scan-and-go capabilities, select warehouses are implementing pre-scanning systems where employees scan cart contents while customers wait in checkout lines. Cashiers access pre-scanned data when shoppers reach registers, dramatically reducing transaction times during peak periods.

These dual technologies address longstanding member complaints about lengthy checkout waits, particularly during weekends and holidays when warehouses experience maximum traffic.​​

Change #5: Pharmacy Partnership Revolutionizes Prescription Pricing

Effective January 1, 2026, Costco pharmacies partnered with Navitus Health Solutions to revolutionize prescription pricing transparency. The cost-plus model calculates drug prices by adding fixed markups to Costco’s acquisition costs plus pharmacy service fees.

Richard Stephens, Senior Vice President of Costco Pharmacy, declared the retailer “proud to be their first network pharmacy partner to deliver highly competitive, fully auditable drug costs”.​

Pharmacy Benefits Extend Beyond Membership Walls

Unlike food court restrictions, the Navitus partnership offers prescription access without requiring Costco memberships. Members living within one hour of Costco Pharmacy locations receive complimentary same-day prescription delivery through Instacart partnerships.

This approach positions Costco as a pharmaceutical pricing transparency leader amid escalating healthcare costs affecting millions of Americans nationwide.​

Change #6: Kirkland Signature Expansion Combats Economic Pressures

Costco is substantially expanding its Kirkland Signature private label to offset tariff impacts and combat persistent inflation. CFO Gary Millerchip explained that Kirkland products “offer members 15% to 20% value compared to national brand alternatives with equal or better quality.” The fourth quarter of fiscal 2025 alone introduced over 30 new Kirkland items across multiple product categories.​

Environmental Strategy: Local Sourcing Reduces Carbon Footprint

The retailer plans shifting select Kirkland Signature production closer to sales points, reducing transportation costs and greenhouse gas emissions simultaneously.

This localization strategy mirrors successful international approaches in Mexico and Canada. The initiative helps Costco maintain competitive pricing while addressing growing consumer demand for environmentally responsible retail practices and reduced carbon footprints.​

Change #7: Employee Wages Reach Historic Highs

Top-tier Costco clerks now earn $31.90 hourly in 2026, representing dollar increases from 2025 rates. CEO Ron Vachris stated, “We believe our hourly wages and benefits will continue to far outpace others in the retail industry.” The three-year labor agreement includes additional dollar raises in March 2027, bringing top wages to $32.90 hourly—nearly double Walmart’s average compensation.​

Entry-Level Workers See Substantial Gains

Entry-level clerks and assistants received 50-cent hourly increases, bringing wages to $21 and $20 respectively. Average wages across U.S. and Canadian operations now exceed $31 hourly when including bonuses and incentives.

These increases significantly outpace competitors like Walmart, where average wages hover around $18 hourly, and Kroger at approximately $25 hourly.​

Enhanced Benefits Reward Long-Term Loyalty

The new labor agreement provides first-year employees with paid vacation time, previously unavailable to newest workers. Employees with 30 years of service now qualify for six weeks of annual vacation.

These enhanced benefits complement industry-leading wages, contributing to remarkably low employee turnover rates—under 6% annually compared to retail industry averages exceeding 60%.​

Union Agreement Prevents Widespread Disruption

Costco reached tentative agreement with Teamsters representing 18,000 workers across six states, averting potential strikes after union members voted overwhelmingly to authorize work stoppages. The agreement includes higher wages and a 22% boost in pension contributions.

While unionized locations represent less than 10% of Costco’s U.S. stores, the settlement establishes industry compensation benchmarks.​

Digital Transformation Accelerates Member Engagement

E-commerce and digitally-enabled sales surged 20.5% during the first quarter of fiscal 2026, significantly outpacing overall sales growth. This digital acceleration demonstrates member enthusiasm for online shopping options and app-based services. The company continues investing heavily in digital infrastructure to support seamless omnichannel experiences for its rapidly growing membership base.​

Membership Revenue Jumps Following Fee Increases

Following the first membership fee increase in seven years—from $60 to $65 annually—membership fee income jumped 7.4% year-over-year. This non-sales revenue stream provides critical stability amid economic uncertainties and tariff challenges.

The fee increase alone contributed 3% of total fee income in recent quarters, demonstrating strong member retention despite higher costs.​

Tariff Challenges Met With Multi-Pronged Strategy

Costco filed lawsuits requesting tariff refunds from federal authorities while simultaneously adjusting supply chains to minimize tariff exposure.

CEO Vachris noted that expanded Kirkland Signature offerings help “offset potentially inflationary impacts from tariffs.” These coordinated approaches protect members from dramatic price increases while maintaining Costco’s fundamental value proposition amid trade policy uncertainties.​

Cultural Continuity Guides Leadership Transition

CEO Ron Vachris, who began his Costco career as a forklift operator over 40 years ago, exemplifies the company’s promote-from-within culture. Having assumed leadership in January 2024, Vachris continues emphasizing employee development and cultural preservation.

His ascent from warehouse floors to executive offices demonstrates Costco’s commitment to internal talent development and operational continuity.​

What This Means for Retail’s Future

These seven transformative changes signal Costco’s strategic positioning amid evolving retail landscapes dominated by e-commerce giants and discount competitors.

The simultaneous emphasis on membership exclusivity, technological innovation, employee investment, and pricing transparency creates competitive advantages difficult for rivals to replicate. Industry analysts predict these strategies will influence broader retail sector trends throughout 2026 and beyond.​

The Road Ahead: More Changes on the Horizon

As Costco implements these 2026 initiatives, members should anticipate continued evolution across digital services, product offerings, and membership benefits. The company’s aggressive expansion plans suggest confidence in its business model despite economic headwinds.

Whether navigating food court scanners, utilizing scan-and-go technology, or accessing transparent pharmacy pricing, Costco members are experiencing the warehouse retailer’s most significant transformation in decades.​​