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Costco Wins Younger Shoppers With Expanded Third-Party Same-Day Delivery

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Costco Wins Younger Shoppers With Expanded Third-Party Same-Day Delivery

Costco’s third-party same-day delivery offering is helping draw younger customers to the retailer, CEO Ron Vachris said Thursday (Sept. 24) during the company’s quarterly earnings call.

Costco highlighted its expansion of third-party same-day delivery channels in the United States in a presentation released Thursday, saying that this is one of the company’s digital enhancements and that it offers Costco products delivered in as fast as an hour from DoorDash, Instacart and Uber Eats.

“We see it as a great addition to the offering, and there is a subset of people that really take advantage of this, and that tends to be the younger customers that we have that resonate more with the immediacy of delivery, and they want that then,” Vachris said during the call.

Costco has found that the same-day delivery business is incremental to its existing business, as customers still visit its stores regularly. They tend to use the delivery offering for fill-in shopping between visits, though some use it more frequently, Vachris said.

Costco’s digitally enabled sales saw year-over-year increases of 19.5% during the most recent quarter and 20.9% during the most recent fiscal year, according to a Thursday press release. Vachris said during the call that these sales include third-party delivery.

DoorDash announced Sept. 17 that Costco is now available on the DoorDash Marketplace across the U.S., with same-day delivery by DoorDash, marking an expansion of the companies’ global partnership that already spans Australia, New Zealand, Sweden, Iceland and Puerto Rico.



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