We’ve all been there – searching for a close parking spot and rummaging to find the cleanest cart. You went to the store for a few items. 30 minutes. That was your plan: get in and out in 30 minutes. How did it turn into 2 ½ hours? Well, you’ve found yourself mesmerized by the store’s merchandise – from TV’s, to food, to cat litter.
Where are you? COSTCO.
What were those few items you were looking for? Costco cookies? Bulk cereal or just canned foods? The headache is over. Costco has just announced that their grocery department will offer a delivery service. This 2-day delivery option will be free on orders that total more than $75.
Costco has also teamed with Instacart for a same-day delivery option that will hit 376 locations of its 514 U.S. stores. This new delivery option has been established to counter the threat of retailers such as Walmart, and of course Amazon, whose e-commerce has expanded to Whole Foods. Costco CFO Richard Galanti commented:
We feel good that we’ve got a few delivery options for our members that frankly are better than the ones they were doing the day before with us, or with Instacart, or with anybody else.
Costco’s e-commerce sale has already risen 21% in the fourth quarter, growing 13% overall this year. Their total income has extended to $42.3 billion, according to Reuters. However, Galanti urges customers to still visit the Costco warehouses:
There are people that actually want to go touch their fresh foods and decide, pick it themselves…There’s going to be an increasing percentage of online and online delivery and the question is… ‘How can you drive sales if you’re not offering as many alternatives?’