Costco is making an unusual move as 2025 draws to a close, offering a limited-time incentive aimed at attracting new members during the final days of the year. Through a short-term promotion run in partnership with Groupon, the warehouse retailer is bundling one-year memberships with digital Costco Shop Cards, a tactic the company rarely deploys given its traditionally rigid pricing structure.
The promotion, which expires at midnight on Dec. 31, is available exclusively to new members or individuals whose previous Costco memberships have been inactive for at least 18 months. Under the offer, customers who sign up for a Gold Star membership receive a $40 Digital Costco Shop Card, while those opting for the higher-tier Executive membership receive a $60 Digital Costco Shop Card.
The incentive applies only to U.S.-based customers and includes Costco’s standard two-card benefit—one card for the primary member and a second card for another household member aged 18 or older.
A Rare Departure From Costco’s Pricing Model
Costco is known for its disciplined approach to membership pricing, which historically changes infrequently and applies uniformly across its customer base. Unlike many retailers that regularly offer promotional discounts or sign-up bonuses, Costco typically relies on its value proposition—low prices, private-label products, and bulk purchasing power—to drive membership growth.
That makes the year-end promotion noteworthy. While Costco has occasionally partnered with third-party platforms in the past, such offers remain relatively rare, especially when tied directly to a financial incentive such as a digital gift card.
The promotion is marketed on Groupon with language emphasizing both savings and immediate rewards. Customers are encouraged to “unlock exclusive savings on groceries, electronics, gas, and more,” while also receiving a digital Shop Card that can be used either online or in-store.
Membership Tiers and Benefits
The Gold Star membership, Costco’s standard individual tier, provides access to all Costco warehouse locations and online shopping options for one year. The Executive membership, priced at a higher annual rate, includes additional perks that have made it increasingly popular among frequent shoppers.
Executive members earn a 2 percent annual reward on most Costco and Costco Travel purchases, with rewards capped at $1,250 per year. Additional benefits include enhanced savings on select services and, at some locations, expanded shopping hours.
While the Shop Cards offered through the promotion cannot be used at Costco food courts and are subject to state-specific cash redemption laws, they remain broadly flexible for most other purchases. According to the terms, the digital gift cards are delivered by email within 14 days of enrollment.
Strict Eligibility Rules Apply
Costco has imposed multiple restrictions to limit the scope of the promotion. Only individuals who have never held a Costco membership—or whose prior memberships have been inactive for at least 18 months—are eligible. This includes former primary members, household cardholders, and affiliate account holders.
Current members looking to renew, upgrade, or extend their existing memberships are excluded, as are Costco employees. Each individual is limited to one Groupon voucher, and the offer cannot be combined with other discounts or promotional codes.
Participants must be at least 18 years old and are required to activate their membership in person by presenting a valid photo ID along with a printed or digital copy of their Groupon confirmation email at a Costco warehouse.
Timing and Strategic Context
The timing of the promotion appears deliberate. Year-end periods often see heightened consumer spending, increased interest in memberships as gifts, and a focus on budgeting ahead of the new year. By introducing a limited-time incentive that expires on Dec. 31, Costco may be aiming to capture undecided shoppers who are weighing whether a membership will deliver enough value to justify the annual fee.
The move also comes amid sustained growth in Costco’s membership base, particularly in its premium Executive tier. During its first-quarter fiscal 2026 earnings call on Dec. 11, Costco Chief Financial Officer Gary Millerchip outlined strong performance across key membership metrics.
Membership fee income reached $1.329 billion during the quarter, reflecting a 14 percent year-over-year increase when adjusted for foreign exchange effects. Roughly half of that growth stemmed from membership fee increases introduced in September, when Costco raised the Gold Star fee from $60 to $65 and the Executive fee from $120 to $130.
Even excluding those price increases, membership income grew 7.3 percent year over year, driven by new member sign-ups and a steady stream of upgrades from Gold Star to Executive memberships.
Executive Membership Growth Continues
Costco reported ending the quarter with 39.7 million paid Executive memberships, representing a 9.1 percent increase compared with the same period a year earlier. Total paid memberships climbed to 81.4 million, up 5.2 percent year over year, while total cardholders reached 105.9 million.
Renewal rates remained high, though slightly lower than the prior quarter. In the United States and Canada, renewal rates stood at 92.2 percent, while the worldwide rate reached 89.7 percent. Both figures declined by 10 basis points quarter over quarter but remain among the highest in the retail industry.
These figures underscore the importance of memberships to Costco’s business model. Unlike many retailers that rely heavily on margins from product sales, Costco derives a significant portion of its profitability from membership fees, which help offset its low-margin pricing strategy.
Sales Performance and Global Footprint
Beyond memberships, Costco also posted strong sales results. Net sales for the quarter rose 8.2 percent to $65.98 billion, up from $60.99 billion during the same period last year. The company continues to benefit from steady consumer demand for groceries, household essentials, and private-label Kirkland Signature products.
As of the end of the quarter, Costco operated 923 warehouse locations worldwide, including 633 in the United States and Puerto Rico. Internationally, the company maintains a presence across Canada, Mexico, Japan, the United Kingdom, South Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand.
Costco also operates e-commerce platforms in several key markets, including the United States, Canada, the UK, Mexico, Korea, Taiwan, Japan, and Australia, further expanding its reach beyond physical warehouses.
A Calculated Incentive
While the promotion may appear generous on the surface, analysts note that Costco’s high renewal rates suggest the company is confident that many new members will remain long after the initial incentive is redeemed. For Costco, the short-term cost of a digital Shop Card may be outweighed by long-term membership retention and increased spending per household.
With the deadline fast approaching, the offer represents a narrow window for eligible shoppers to join Costco under terms that are unlikely to be repeated frequently. For a retailer that rarely discounts access to its ecosystem, the promotion stands out as a calculated year-end push to convert prospective members into long-term customers.
Emily Johnson is a critically acclaimed essayist and novelist known for her thought-provoking works centered on feminism, women’s rights, and modern relationships. Born and raised in Portland, Oregon, Emily grew up with a deep love of books, often spending her afternoons at her local library. She went on to study literature and gender studies at UCLA, where she became deeply involved in activism and began publishing essays in campus journals. Her debut essay collection, Voices Unbound, struck a chord with readers nationwide for its fearless exploration of gender dynamics, identity, and the challenges faced by women in contemporary society. Emily later transitioned into fiction, writing novels that balance compelling storytelling with social commentary. Her protagonists are often strong, multidimensional women navigating love, ambition, and the struggles of everyday life, making her a favorite among readers who crave authentic, relatable narratives. Critics praise her ability to merge personal intimacy with universal themes. Off the page, Emily is an advocate for women in publishing, leading workshops that encourage young female writers to embrace their voices. She lives in Seattle with her partner and two rescue cats, where she continues to write, teach, and inspire a new generation of storytellers.
