Costco is sweetening the value proposition for first-time shoppers and lapsed members with a limited-time offer that adds a free Costco Shop Card to every new membership sign-up. New Gold Star members receive a $20 Shop Card, while new Executive members get $40—instant store credit that can be used on everything from the famous $4.99 rotisserie chicken to household staples and fuel at most warehouse gas stations.
How the Free Shop Card Offer Works for New Members
The promotion applies to new memberships only, typically defined by Costco as households that have not held an active membership for a set period (commonly 18 months). The entry-level Gold Star membership is currently $65 per year and includes a free $20 Shop Card. The Executive membership is $130 per year and comes with a $40 Shop Card plus additional earning potential via rewards.
Costco Shop Cards function like gift cards and can be used in-warehouse, online, and at most Costco fuel stations. They generally do not expire and can be applied toward nearly any purchase in the club, including non-food categories like electronics, apparel, and home goods. As with any promotion, check the specific terms at sign-up—some offers require enrolling in auto-renew, one per household, and delivery of the Shop Card may arrive after activation.
Gold Star vs. Executive: Which Membership Pays Off
Choosing between Gold Star and Executive comes down to how much you plan to spend at Costco and where you shop the most. Executive members earn a 2% annual reward on eligible Costco purchases (subject to category exclusions and an annual cap, as detailed in Costco’s member materials). If you’re debating the upgrade, do the math with this promotion in mind.
Here’s a quick, real-world break-even example: after accounting for the free Shop Cards, the effective net cost is about $45 for Gold Star ($65 minus $20) and $90 for Executive ($130 minus $40). The incremental difference is roughly $45. At a 2% reward rate, you would need about $2,250 in eligible annual purchases to cover that difference. Households that routinely buy groceries, paper goods, cleaning supplies, pet food, seasonal items, and occasional big-ticket purchases can reach that threshold quickly.
Beyond rewards, Executive members often see additional value through select Costco Services (such as auto, insurance, and home services) and Costco Travel, which can deliver meaningful savings on rental cars, cruises, and vacation packages. Both tiers include a free Household Card for another adult living at the same address and full access to in-warehouse shopping, Costco.com, and customer-favorite perks like pharmacy, optical, hearing aid centers, and tire service where available.
Why This Deal Stands Out for Shoppers Right Now
Warehouse clubs continue to attract value-seeking shoppers as persistent price sensitivity reshapes buying habits. Costco’s renewal rates in the U.S. and Canada have hovered above 90% in recent company filings—an indicator that members perceive ongoing value across categories. Meanwhile, Bureau of Labor Statistics data shows grocery prices remain well above pre-pandemic levels, making bulk purchasing and private-label alternatives more compelling than ever.
Costco’s merchandising is built around everyday price leadership, limited-time “treasure hunt” buys, and a steady drumbeat of loss-leaders that reinforce value—think the $1.50 hot-dog-and-soda combo and the $4.99 chicken that rarely budges. Add in fuel that frequently undercuts local averages, according to tracking from organizations like AAA, and the Shop Card bonus acts as a kickstart to savings you can feel right away.
Fine Print and Smart Tips Before You Join
Eligibility matters: new-member promotions typically exclude households with an active or recently expired membership, and the “new” window often extends for many months. Make sure the primary account holder’s name and address meet the “new” criteria before you enroll.
Plan your first trip to maximize the Shop Card. Stock up on shelf-stable items (paper goods, cleaning products, snacks) and staple proteins that freeze well. If you upgrade to Executive, aim to route as many eligible Costco purchases as possible through the warehouse or Costco.com to accelerate the 2% reward accrual.
Finally, review the reward exclusions to avoid surprises. Gasoline, certain services, and some third-party purchases may not qualify for the 2% Executive reward. Costco’s membership materials and annual report lay out the categories clearly.
Bottom Line: Should You Join Costco Under This Offer?
If you’ve been on the fence about joining, this limited-time new-member offer effectively lowers your first-year cost and puts immediate spending power in your pocket. Choose Gold Star for a low-net entry point, or go Executive if your expected annual spend makes the 2% reward pay for the upgrade. Either way, the free Costco Shop Card makes a strong value play even stronger.
