What is the significance of the professions eligible for Costco membership in the UK?

August 7, 2011 9:46 AM

What is the significance of the professions eligible for Costco membership in the UK?

Professions such as dentists, opticians, solicitors, chartered surveyors, as well as general employees of an airline or a bank or an insurance company or the National Health Service are allowed in. Why these? I asked at the reception desk of my local Costco and was told that Costco would happily accept anybody as a member as they do in the USA (is this true?), but it was the UK government that made them select from a list.

So what is so special about these trades and qualifications? Is it just a broad test of professionalism?

posted by hoverboards don't work on water to Shopping (10 answers total)

In the US and the UK, they take people who have essentially already been checked out by their employers and therefore are (supposedly) more reliable. The US Costco certainly did not accept anyone as members (though this may have changed) and you had to prove your employment with a worthy employer.
posted by TheRaven at 10:06 AM on August 7, 2011

I'm not aware of any restriction on who can be a Costco member in the US; now all they require is the annual fee. There's a difference between the regular member plans versus the business member plans, where you have to bring in documentation to prove that you are a business to qualify. This definitely sounds like a UK-specific thing.
posted by oh yeah! at 10:37 AM on August 7, 2011 [1 favorite]

Here's the current details on memberships for Costco in the U.S.

There's nothing UK-specific there, but it may help explain why membership in the UK is currently restricted -- it is not currently restricted in the US. I used to have a Business Membership when I worked for a company that offered membership in their benefits package, but when I left that company my membership converted to Gold Star on my next renewal date.
posted by palomar at 10:45 AM on August 7, 2011

I see from this Guardian article that Costco UK refuses to take credit cards as it says the transaction charges are too expensive and would have to be passed on to customers so that may be the sticking point. In the US, Costco will accept credit cards, but they have an exclusive deal set up -- when I first joined you could only use Discover Card, now their deal is with American Express. I would guess that when/if Costco UK comes to some kind of agreement with a UK-based credit card company to get a break on the transaction charges, the membership restrictions would change.
posted by oh yeah! at 11:06 AM on August 7, 2011

Here are the categories for Individual Membership.

1. Current or retired employee of:

49 Banking/Finance
54 Local Government
50 Civil Servant
55 Medical/Health Service
51 Education
56 Police Force
52 Fire/Rescue
81 Post Office
53 Insurance
73 Airline

2. Qualified as:

71 Chartered Architect
61 Optician
70 Chartered/Civil Engineer
62 Pharmacist
58 Chartered Surveyor
57 Qualified Accountant
59 Dentist
63 Solicitor/Barrister/Magistrate/Advocate

3. Current or retired employee of a U.S. Gold Card or UK Preferred Company

At my local Costco I've seen people turned away who've tried to join and don't fit any of those categories. I'm not sure of the reason why.

I've taken friends with me to shop who don't qualify for membership (you can take 2 people in with you on your card) Costco doesn't accept credit cards either, only cash or debit card, but it will only accept the debit card of the member, so when I've taken friends with me, I've made it clear that anything they buy has to be paid for in cash.
posted by essexjan at 11:09 AM on August 7, 2011

I was able to join CostCo as a teacher. It seemed to me that just about anyone could join provided they had an official-looking payslip; I didn't see anyone in the long queue in front of me turned away.
posted by alby at 11:21 AM on August 7, 2011

In the US I joined Costco through my AmEx Costco card. It meant simply adding a second card to my account. The card's yearly fee is the same as Costco's membership and my membership is "free".

In the US, Costco does only take AmEx, but members can pay by check or debit card as well.

As another possibility, in the US, you basically get two memberships when you sign up. Could you find a friend who meets the job criteria and split membership with them?
posted by maryr at 12:44 PM on August 7, 2011

My understanding -- which, admittedly, may be apocryphal -- is this:

Costco's business model is focused around large purchases and fewer, more valuable customers. They don't want to be overrun with customers buying just a few of their lower value grocery items. Those people are not profitable for a business with margins as small as Costco's.

What those jobs have in common is that they're either professional or unionized, and thus fairly stable and reasonably well-paid. Costco has a reputation as a place for bargains, but they're not courting the kind of clientele that needs to shop in discount stores.

There used to be restrictions on Costco memberships in Canada, especially as they were first opening new locations and didn't want to be overrun, but I believe these days anyone willing to pay the membership fee can join.
posted by jacquilynne at 1:23 PM on August 7, 2011

I wasn't clear if, in addition to getting your answer, you were also wondering if you could join or shop there. I am told that, if you get someone to buy you gift cards, Costco will let you in to shop, even without a card. I have not checked this, though, as it doesn't apply to me.
posted by Chaussette and the Pussy Cats at 8:43 PM on August 7, 2011

Take a look at this article: Costco is humming in the U.K., thanks to quirk in zoning law

If I'm reading that article right, they are allowed to open their stores in warehouse or industrial zoning, in addition to retail zoning, because they are classified as a wholesaler. Opening to the general public would probably jeopardize that.
posted by smackfu at 12:01 PM on August 8, 2011