MW Is a $130 Costco executive membership the new VIP status?
By Charles Passy
Executive membership has grown by 9.1% to nearly 40 million - and these social-media stars are celebrating it in a viral video
Kim and Penn Holderness are going viral with their video about the $130 Costco executive membership.
Forget about having a platinum credit card. These days, the cool crowd may be more interested in becoming a Costco $(COST)$ executive member.
The upper tier of Costco's membership costs $130 a year, which is $65 more than its standard gold-star membership. And while it confers some key benefits - particularly a 2% reward on Costco purchases, delivered annually in the form of a store certificate - it isn't necessarily a VIP-type program. That is, there's no lounge for executive members. There's not even an offer of a free Costco signature hot dog.
But Costco's executive program has generated a fair bit of buzz these days, with the warehouse giant reporting during an earnings call in December that the ranks of executive-card holders have grown by 9.1% to nearly 40 million. By contrast, the company's overall membership ranks increased at a smaller rate - by 5.2% to 81.4 million.
Moreover, Penn and Kim Holderness, the media-savvy couple known for their viral videos, recently turned their attention to Costco's executive program. They created a video that both celebrates and mocks what it means to be part of Costco's upper echelon, with Penn arriving at a Costco store in suit and tie, waving his jet-black executive card and announcing, "I'm an executive Costco member. They roll out the red carpet when I enter." (For the record, Costco executive members go through the main entrance without any such fanfare.)
The Holderness video has already generated more than 3 million views on Facebook, and it's taking off with hundreds of thousands of views across TikTok, YouTube and Instagram, too. Kim Holderness says even if the executive program isn't all that "executive," she thinks it holds a certain VIP-type fascination.
"When I take the Costco card out of my wallet, it makes me feel very important in a way I didn't deserve," she said.
Even if there is no special sanctum where executive-card members can luxuriate, Costco has tried to make its executive program more attractive of late, especially as a way to encourage gold-star members to pay that extra $65 and join the upper tier. And the results have paid off, according to Costco Executive Vice President Chief Financial Officer Gary Millerchip.
"We've seen a really nice uptick in executive upgrades," he said during the December earnings call.
'When I take the Costco card out of my wallet, it makes me feel very important in a way I didn't deserve.'Kim Holderness, co-creator of a viral Costco video
Last summer, Costco started giving executive members an exclusive earlier hour to shop the store by themselves. It's a perk that Mark Dickerson, a resident of suburban Minneapolis, finds invaluable, saying he's no longer fighting the crowds to do his biweekly Costco shopping.
"It's getting me in and out of there in 15 minutes," he said.
Another new Costco executive perk: a $10 monthly Instacart credit for purchases over $150 made through Costco.com that are delivered via Instacart.
It's no secret why Costco values its members in general and its executive members in particular. The company generates a good chunk of its revenue from membership fees. And executive members are seen as especially loyal to the brand and likely to spend more in the store or visit more often as a result.
So even if the 2% executive annual reward can effectively zero out the $65 upgrade - meaning Costco isn't seeing additional membership revenue after the reward is tallied - it may not matter, experts say. Costco still benefits from the expansion of its executive-member ranks.
'Costco needs to do an executive-member cruise.'Reilly Newman, brand strategist
If anything, brand strategist Reilly Newman thinks Costco could do more to celebrate its executive members as an exclusive club of sorts as a way to further cement that feeling of loyalty. "Costco needs to do an executive-member cruise," Newman offered.
In that regard, the Holderness video jokingly imagines a world in which Costco executive members get VIP status in various ways - say, by gaining entrance into a fully booked restaurant. But, again, none of that is actually part of a Costco premium membership.
As Penn Holderness puts it: "Anyone can be an executive at Costco."
For those considering becoming an executive member, it's nevertheless worth doing some math, experts advise. To reap the benefits of the 2% reward, so that the $65 upgrade fee pays for itself, you need to spend at least $3,250 annually. Also worth noting: Costco puts a limit of $1,250 on the yearly reward.
Costco will let its gold-star members test run becoming an executive member, however. Here's how it works: If you pay for the $65 upgrade and don't end up earning at least a $65 reward, Costco will refund the difference as a one-time courtesy.
Adam Yosim, a Costco member who lives in Boca Raton, Fla., did just that: He upgraded from the gold star to executive level and found the 2% reward didn't justify the added $65 fee, so he downgraded back to gold star and got a refund.
Of course, in downgrading, Yosim loses out on the early hour of exclusive shopping and potentially feeling like that red-carpet-worthy VIP. He said it's a perk he can live without.
"I'm not going to wake up extra early" for a Costco run, he said.
Don't Short Yourself: I got $1,000 back by complaining like a pro. You can, too.
-Charles Passy
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(END) Dow Jones Newswires
March 13, 2026 14:38 ET (18:38 GMT)
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