Good news for those of you who love Costco but hate navigating that oversized cart through crowded aisles only to have to lug that 10-pound box of oatmeal all the way home.
Superstore giant Costco COST, -5.97% has rolled out CostcoGrocery, a service that offers two-day delivery on dry grocery, and an expanded same-day delivery service through a partnership with Instacart.
With its new two-day delivery service, Costco will deliver items marked on-site as “CostcoGrocery” to your house, offering free delivery on orders of $75 or more. The two-day service excludes fresh and refrigerated foods, but includes a range of items such as cereal, canned vegetables, toiletries and soda cans.
For shoppers looking to get fresh food delivered same-day, Costco is expanding its existing partnership with food delivery startup Instacart to deliver anything from its list of about 2,000 products. While delivery is free with orders more than $35, Instacart does charge a 10% service fee on top of all orders. Costco says orders can be delivered in as little as two hours.
Costco executives once said the store previously been slow to adopt online shopping because members tend to spend more money when they are in a physical store. The Costco news coincided with the company’s latest earnings report.
The membership-based warehouse retailer reported earnings per share of $2.08, up from $1.77 in the same quarter last year and ahead of the $2.03 per share FactSet consensus. Sales totaled $42.3 billion, up from $36.6 billion in the same quarter last year and above the $41.8 billion FactSet consensus. Same-store sales rose 6.1% for the quarter.
Of course, there are some things delivery won’t get you — no free samples, and no $1.50 food court hot dog combo. You’ll have to head to a brick-and-mortar store for those.