For many years, the Costco shopping experience largely involved driving over to a warehouse club store, battling it out for a spot in the parking lot, roaming the aisles, and waiting in long checkout lines.
But Costco has increasingly been making changes that allow members to get their purchases in a more convenient manner.
During its fourth-quarter 2026 earnings call, Costco CEO Ron Vachris highlighted improvements in both large-item and same-day delivery, describing how the retailer has reduced wait times for customers.
“We’ve made some significant improvements in the past five years, bringing our times of delivery of furnishings and appliances from four to five weeks down to three and four days,” Vachris said.
The improvements extend to same-day delivery.
“The same type of improvement has been experienced in this same-day delivery,” Vachris said. “And the majority of these deliveries are done within 45 minutes.”
The changes reflect Costco’s efforts to make shopping more convenient without abandoning the value-focused strategy that has helped it build a loyal customer base.
The retailer has also expanded its delivery partnerships with DoorDash and Uber Eats, giving members more ways to shop without traveling to a warehouse.
That matters because Costco’s business depends on more than merchandise sales. Its membership model encourages shoppers to return regularly, making customer satisfaction and retention extremely important.
Costco’s delivery improvements support its membership strategy
Costco’s membership fees provide a recurring source of income, helping distinguish its business model from retailers that depend primarily on individual transactions.
The company reported approximately $1.85 billion in membership fee income during its most recent quarter, an increase of 7.3% year over year. It ended the quarter with 84.1 million paid household memberships, while its U.S. and Canada renewal rate reached 92.3%.
Those numbers illustrate why Costco has a strong incentive to keep improving the member experience.
When customers believe their membership consistently delivers value, they have more reason to renew it.
Faster delivery adds another benefit, particularly for shoppers who want groceries, household essentials, or other purchases without making a separate trip to a warehouse.
Convenience could also encourage more frequent purchases. Members who can order products for delivery may turn to Costco for smaller, routine shopping trips rather than reserving their visits for large stock-up purchases.
That approach aligns with Costco’s broader strategy of improving its digital capabilities while leveraging the merchandise selection and pricing that already attract customers to its warehouses.
Shutterstock
Costco faces a trade-off as delivery becomes more important
There is a potential downside to Costco’s push toward delivery. Customers who shop online aren’t walking through the warehouse aisles.
That distinction matters for a retailer known for its treasure-hunt shopping experience.
More Retail:
- Costco sees major shift in member behavior
- Retail chain shuts all locations as legal changes hit industry
- Costco makes major investment in online shopping for members
Customers visiting a Costco warehouse might discover a seasonal product, a new household item, or a tempting bulk purchase they hadn’t planned to make. Those impulse purchases can increase transaction sizes and contribute to sales growth.
When shoppers order a specific list of products online, they may have fewer opportunities to discover additional merchandise.
Delivery also introduces fulfillment and third-party service costs, creating a challenge for a retailer that competes aggressively on value.
However, the alternative carries risks, too. If Costco members find shopping inconvenient, they may turn to competitors offering faster or easier ways to get everyday necessities.
Costco appears to be pursuing a delicate balance — preserving the warehouse experience while making digital shopping a more compelling option.
Faster delivery could also help Costco remain relevant to younger shoppers and busy households, potentially encouraging them to order more frequently.
A strategic choice
For Costco, the objective here isn’t simply to deliver products faster. It’s to give customers more reasons to keep using their memberships.
With renewal rates above 92% in the U.S. and Canada, it’s clear that the company already has a strong foundation.
Improving delivery could help Costco protect that loyalty while opening another avenue for sales growth.
Maurie Backman owns shares of Costco.
