Previously, the company only offered expensive items such as jewelry and electronics, saying it was expensive to offer more widely. Some Wall Street analysts are questioning whether Costco should expand the service to other goods as the curb pickup explodes in popularity.
Richard Galanti, CFO of Costco, said the company wanted to test it in a small market.
The new option to take Costco has a higher minimum order threshold and fee than other chains. Walmart, Kroger and Whole Foods offer free grocery picking for orders over $ 35.
Over the past few years, Costco has said that picking up coastal groceries doesn’t make sense to offer, mainly because the club doesn’t have much space in its crowded shops and parking lots to retrieve pickup logistics. The option requires a stacking area inside the store so workers can collect orders, extra cooler space to keep products fresh and special parking spaces for customers who come in to pick up their groceries.
“You have to have a place to store things,” Galanti said in an interview last year. “You can’t store it at room temperature. You have to divide it into chilled, frozen and dry.”
And Costco wants buyers to enter warehouses, where they often make unexpected purchases while browsing. The acquisition deprives Costco of this opportunity to drive sales.
“We want you to walk around the warehouse and see what we have to offer,” Galanti said.