Costco regularly changes up its merchandise to keep customers interested. That’s part of its “treasure hunt” model, which has fueled the chain’s success.

“About 1,000 of the 4,000 items that we carry are what we refer to as the ‘treasure hunt’ items. Those are the items that are constantly changing. Those are the types of things that continue to bring customers in shopping with us. We try to create an attitude in those kinds of products that if you see it you’d better buy it, because chances are it’s not going to be there next time — so create an urgency in the customer,” Costco Founder Jim Sinegal said in a conversation with Investing Master Class.

The problem with that model is that sometimes popular items get removed from the selection.

That’s something members in the United States and Canada recently experienced as the chain has removed two popular items that saved members money.

Costco pulls popular gift cards

Costco sells a selection of gift cards on its website and in its warehouse clubs. These include restaurant deals where the value of the card is higher than the price, movie ticket deals, and sometimes, discount gym memberships.

Having shopped at Costco for 35 years, I’ve long relied on discounted gift cards to save on purchases I already planned to make.

“Customers walk through the warehouse expecting not only value but surprise. This element of discovery — the possibility of finding an unexpected deal, an unusually high-quality brand, or a limited-time item — is a cornerstone of Costco’s business strategy,” shared Mojo Sales and Strategy.

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But, since some of the chain’s items do stay in stock for long periods of time, members do expect certain products. When those disappear, it can lead to disappointment.

That’s what’s happening as Costco has pulled Under and DoorDash gift cards from its website and warehouses, Doctor of Credit reported.

Uber gift cards can be used for rides or food delivery.

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Costco pulls Uber and DoorDash gift cards

Members liked these cards because they amounted to buying a $50 bill for $40. The actual discount amount varied at times, but generally, they offered 20% off services from both brands.

“This all matters because Costco and Costco.com were a reliable, steady source of Uber and DoorDash gift cards at a 20% discount. Similar deals appear now and then, but having a consistent year-round source was valuable,” Doctor of Credit reported.

Google searches for both Uber and DoorDash gift cards only showed retailers and the brands themselves, selling them at full price.

Costco has not publicly commented on the removal of these gift cards, and the company generally does not issue statements on the availability of individual products.

Gift cards are a sales driver

It’s very possible that Costco had no choice when it came to dropping the gift card. Uber and DoorDash could have pulled the offers.

That’s what happened to a long-standing Carnival Cruise Line gift card offer that used to appear on the AARP website.

Gift cards, however, are a strong sales driver for Costco.

“In the recent mixed discretionary backdrop, we believe COST’s merchandising efforts, including an attractive assortment of discounted gift cards, have contributed to a meaningful improvement in non‑foods category trends lately.,” Oppenheimer analysts Rupresh Marikh and Erika Eller shared with Marketwatch.

It’s easy to see why Costco members like buying gift cards. BarChart shared some reasons why they are popular:

  • Costco sells discounted gift cards from well-known retailers, including restaurants and entertainment brands. Examples include Domino’s, Dave and Buster’s, and Cinemark Theatres.
  • But you won’t pay the standard retail price. A $50 gift card won’t cost you $50. While not every gift card purchased from Costco will offer massive savings, every dollar you save makes a difference. Discounts vary, so check to see what current gift card deals are available.
  • Want to save even more money? Costco often discounts some gift cards more heavily, leading up to major holidays. You can get a bigger discount by purchasing them during the holiday sales season.

Costco does not have a standard discount for gift cards.

“Most of their cards are offered at between a 10 and 30% discount on the price of the cards, so for instance, a $100 gift card could only cost $79.99,” Costco97 reported.

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