Costco Wholesale Powered by Instacart
The new same-day grocery delivery option is through Costco's partnership with Instacart and includes both dry and fresh grocery.
The option is available at 376 US locations and there are additional US locations planned, which are expected to be added between now and the end of calendar ’18.
There are approximately 1700 SKUs available for one-day delivery. Orders arrive the same-day, next day, or day of choice, utilizing a one-hour delivery window in as little as two hours.
Prices are generally 15% to 17% higher than warehouse walk-in price. In addition a 10% service fee will be added to orders at checkout and orders must total more than $35 for free shipping. However, Costco notes on its site that the separate 10% service fee is used to compensate in-store shoppers as well as delivery drivers and "you may elect not to pay the service fee."
Galanti said what Costco has found so far is "it's more fill-in than replacement of a shop," but he continues, "we have very little time and data to feel comfortable about where it will go."
Costco has also been continuing to build e-commerce awareness through warehouse signage, special offers and targeted emails.
"We feel that all these efforts, which are ongoing, have resulted in increased traffic in sales, both online and in-store during the past couple of quarters in particular," he said. "Looking forward, we’ll continue to expand these types of activities to drive our businesses. You'll hear more from us in the coming quarters about driving online sales with ongoing site improvements, improved online marketing activities and of course along with great products and services at fantastic prices."