Costco’s (finally) test of curbside pick-up for groceries

Costco announced last week that it would begin offering warehouse club members in same-day pickup on 2,000 grocery and general merchandise. There is a minimum $ 100 order to pick up, and there is a $ 10 fee on each order because the model “adds an extra expense to our low-cost business model and limited markup structure,” the company says on its website.

The company previously offered Pique only on expensive items such as jewelry and electronics, saying it was expensive to offer more broadly. Some Wall Street analysts have questioned whether Costco should expand service to other goods as the cubside pickup explodes in popularity.

Costco Chief Financial Officer Richard Gallanti said the company wanted to test it in a smaller market.

“We’re always trying different things. We still scratch our heads a little bit at that. We figured we’d try it in a discrete market, where there are a limited number of locations,” he told CNN Business. “And it’s really nothing more than a test at this point.”

Costco ()Cost) At each of the shops in Albuquerque has dedicated parking space for customers driving to grab their order. Employees create online orders and deliver them to customers’ cars. Customers will shop and pay for orders through Costco’s website.
Costco’s test comes in the form of rivals, such as Walmart ()WMT), Kroger ()Kr) And Adventuress ()AMZN)Whole Whole Foods has also expanded its own curbside pickup offerings during the epidemic.

Costco’s new pickup option has a higher minimum range and charges than other series. Walmart, Kröger and Whole Foods offer free grocery pickup for orders above $ 35.

Over the years, Costco has said it makes no sense to offer curbside pickups for groceries, mainly because the club doesn’t have much space in its jam-packed stores and pull the logistics of pickups There is a parking lot for The option requires a staging area inside the store to allow workers to collect orders, additional cooler space to place items, and new and dedicated parking spots for customers driving to pick up their groceries .

“You should have a place to put stuff,” Galanti said in an interview last year. “You cannot store it at room temperature. You have to separate it into refrigerated, frozen and dry.”

Costco, which operates on a razor-thin profit margin, also says that it is too expensive for its business to have employees dedicated to putting together customer orders and bringing them to their cars.

And Costco wants shoppers to come to warehouses, where they often make unexpected purchases while browsing. The pickup snatched this opportunity to drive Costco for sale

“We want you to walk the warehouse and see what we have to offer,” Galanti said.


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