Costco now selling Starbucks gift cards at discounted price.
Costco, known for offering deals on top brands, is now selling Starbucks gift cards at a 20 percent markdown.
For the first-time ever, Costco is selling five, $20 gift cards for $79.99.
“Yes, this is the first time that Starbucks has partnered with Costco and offered this deal,” Starbucks told me via email.
The Costco-Starbucks partnership is not surprising given the fact that the coffee giant has been struggling to turnaround sluggish sales. This year, Starbucks announced plans to close 600 cafes, including 10 in Orange County.
My take: Starbucks gift cards have always been available in supermarkets. But, its presence in Costco is a major coup for budget-strapped shoppers.
Costco has offered discounted gift cards for years on services and entertainment venues such as spa treatments, Disneyland tickets and movie theater tickets.
I imagine the Starbucks cards, a popular holiday gift or stocking stuffer, will be huge success given the fact that shoppers are pinching pennies these days.
In fact, during a visit to a Costco in Tustin the other day, I couldn’t even find the cards. A cashier told me they were having trouble stocking them. (One media report claims Costco has sold more than a 1 million cards.)
Hint: Ask for the cards at the checkout stand, so you don’t have to hunt for them.
Related stories:
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- Why is Starbucks focusing more on foods and smoothie drinks, and less on coffee? Find out the answer.
- Fast food joints increase breakfast offerings
- Ten O.C. Starbucks closing
- Laguna Beach Starbucks among 50 to close in July
- ‘Starbucks of Taiwan’ set to open first U.S. cafe in O.C.
- Why is Starbucks focusing on everything but coffee? The chain responds.
- Review: Starbucks launches new breakfast foods
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You say Costco is selling a $20 Starbucks card for $79.99.
Nancy, one question, do they charge sales tax on these Starbucks cards?
Tustin (Costco) needs some help then, if they are having trouble stocking Starbucks giftcards! LOL
Mike — I don’t think gift cards are subject to sales tax, anywhere.
And, to Diane Sanchez: I said “five, $20 gift cards for $79.99″ — big difference..
Just goes to show: they know their margins. Essentially, more than 20% of the value of a gift card goes unused… entirely wasted. The rest is pure profit.
It will be interesting to see if other merchants will offer discounts on their gift cards this holiday season. Starbuck’s move could create a paradigm shift in gift card marketing/buying - especially among struggling retailers that sell high-margin products. This might be a good/profitable strategy for apparel/fashion retailers, book stores, others looking to kicj-up sales a notch or two.
I prefer Coffeebean and have been buying their their 20% discounted cards at Costco Tustin for some time. Now Starbucks has made a deal with Costco for exclusivity in selling Starbucks’ coffeecards - and no more Coffeebean. Too bad they weren’t willing to let the market decide. I am dissappointed and will discontinue my patronage of both Starbucks and Costco!
Jeannie, Sam’s Club is now selling the Coffeebean gift cards… at face value.
do you know which costcos offer these giftcards?
I believe all of them are offering the cards….I know the two in Tustin were selling them over the holiday..anyone else, from afar, want to chime in?
My Costco told me that they’re not selling the Starbucks cards anymore. Has anyone else heard this? Or can you still get cards at your Costco?
To Steve: You’re correct, it was a limited time offer only for Christmas time.