Costco expands delivery reach

Costco Wholesale announced a new partnership with DoorDash and a major extension of its relationship with Uber, vastly expanding its same-day delivery capabilities.

But Costco stays out of the drone race

The moves leave Costco well behind rivals like Walmart and Amazon, which use drones for some of their fast deliveries. Costco's strategy is by design.

Why Costco customers stay loyal

Costco fanatics shop there for its curated assortment, competitive prices, its highly trusted Kirkland Signature brand, and the treasure-hunt aspect of shopping in its cavernous warehouses.

Membership loyalty runs deep

Ninety-two point three percent of Costco members in the U.S. and Canada renewed last year. Costco's net sales for the fiscal year ended in August hit two hundred ninety-seven point three billion dollars.

“92.3% of members in the U.S. and Canada renewed last year”

Low margins mean careful spending

Costco's business model is designed for basic retail operations to be break-even. The average Costco store carries about four thousand different items, compared to one hundred thousand at Walmart.

E-commerce grows but in-store matters most

Costco's e-commerce business is growing more quickly than store sales. Digitally-enabled sales rose twenty point nine percent, well above the companywide comparable sales uptick of eight point four percent.