The retail game is getting more intense as Costco launches a new program. Costco is entering the grocery curbside pickup race, recently announcing it will be testing out a pilot for the service.
Business strategies shift over time, and Costco is experiencing this in its latest program. After many years of holding off on grocery curbside pickup, the wholesaler is finally testing out a program for the service.
“We’re always trying different things. We still scratch our head a little bit on it. We figured we’d try it in a discrete market where there’s just a limited number of locations. And it’s really nothing more than a test at this point,” Richard Galanti, Chief Financial Officer, explained.
Previously, the company only offered pickup on expensive items that were not grocery related. In a statement to CNN Business, Galanti stated Costco hoped to test the service in the small market of Albuquerque, New Mexico.
According to its website, Costco is offering members at three stores same-day pickup on grocery and general items. The retailer outlines that there is a $100 order minimum to choose pickup, and a $10 fee on each order, due to the fact that the model “adds an additional expense to our low-cost business model and limited markup structure.”
With many consumers shifting their order of operations, so too have retailers. Will we see Costco expand this model to more markets? Deli Market News will continue to report.