Last year, Costco was celebrated for achieving a high score of 85 percent on the ACSI, leading the charge as the most satisfying grocery store amid stiff competition. This acclaim was a testament to the company’s dedication to customer satisfaction and its ability to meet consumer needs effectively.

An Overview of the ACSI Ratings Slide

However, by 2025, this scenario had changed dramatically. The company saw its satisfaction score drop nearly 5 percent, one of the sharpest declines recorded in the survey’s history. This fall pushed Costco down to the seventh position on the list, as rated by customers from 19 different grocery stores considered in the survey.

This year’s ACSI survey pointed out that not only did Costco experience a notable decline, but BJ's Wholesale Club encountered an even steeper fall, with nearly a 6 percent drop in satisfaction. These shifts indicate a challenging environment for wholesale clubs that historically dominated customer satisfaction rankings.

Retail Analyst Insights on Costco’s Performance

Retail analyst Neil Saunders provided context to Costco's sudden drop, describing it as an anomaly for a brand typically known for its customer loyalty and cost-effective shopping options. Saunders expressed that while reduced satisfaction ratings do not necessarily reflect Costco's growth rates, they do highlight customer service challenges that need addressing.

Specifically, Saunders pointed to three major issues: overfilled parking lots, slow checkout processes, and underwhelming e-commerce offerings. These factors have significantly impacted customer experiences, undermining the popular perception of Costco as a premier shopping destination.

Changes Under New Leadership

Amid these challenges, Costco welcomed Ron Vachris as its new CEO on January 1, 2025. Vachris has initiated several technological enhancements, focusing on improving operational efficiency and curbing membership card sharing, which has been a growing concern.

During Costco's third-quarter earnings call in May, Vachris highlighted the testing of new front door scanners designed to speed up checkouts by verifying memberships early. “We're testing some front door scanners. They're speeding up our registers significantly when we get all the scanning and memberships are verified at the front door,” Vachris noted.

Despite these technological upgrades, customers continue to express concerns over certain aspects of their shopping experience, especially parking management. A frustrated customer took to Reddit to vent, stating, "Costco does a lot of things right, parking lots aren’t one of them."

Challenges Aside, Costco Stands Above the Average

Though Costco's current customer satisfaction score of 81 percent represents a decline, it still sits above the industry average of 79 percent. This indicates that despite the setbacks, Costco maintains a relatively strong position in the supermarket sector.

The company has also continued to engage in diversity, equity, and inclusion (DEI) initiatives, maintaining its course despite varying industry trends and political pressures, such as those stemming from changes in the Supreme Court and presidential administrations.

Accordingly, Costco’s executives have also been rewarded financially for their achievements related to the company’s social and environmental efforts, further highlighting the corporation's commitment to ambitious and potentially profitable corporate social responsibility goals.

Looking Ahead: Analysts Remain Optimistic

Despite the recent dips in customer satisfaction, industry analysts remain generally optimistic about Costco’s market performance in the future. Saunders underscored this optimism, stating, "Costco remains popular with shoppers, and this shows in its recent results and good trading numbers."

The blend of strategic leadership changes, technological innovations, and steadfast corporate initiatives suggests that Costco is not merely managing current challenges but is actively addressing them to ensure sustained customer loyalty and operational success in the coming years.

This episode in Costco's history illustrates the dynamic and often unpredictable nature of retail market forces, where customer expectations and corporate operations must constantly adapt to changing conditions.