Morgan Stanley analysts noted that Costco has experienced low double-digit membership count increases after the implementation of card scanners, which suggests a potential influx of paid members as seen with Netflix.
The analysts emphasized that Costco could capture an additional 4 million paying members by converting non-fee paying customers in North America due to the new membership scanning system.
CEO Ron Vachris highlighted that the card readers provide real-time traffic counts, enabling operational adjustments at the front end to enhance customer service efficiency during busy periods.
The system has been piloted in the US for about six months, although similar membership scanners have been operating in European Costco locations for over two years.
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