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Costco is (finally) testing a food pickup

Last week, Costco announced it would begin offering warehouse members in the area the same day making 2,000 groceries and general merchandise. There is a minimum order of $ 100 to pick up a pickup and a fee of $ 10 for each order because the model “adds extra cost to our low-cost business model and limited markup structure,” the company said on its website.

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.


7;re always trying different things. We’re still scratching our heads about it. We decided to try it in a discreet market with a limited number of seats,” he told CNN Business. “And it’s actually nothing more than a test at the moment.”

Costco (EXPENSES) there are special parking spaces for customers who pick up to pick up their orders at each of the stores in Albuquerque. Employees prepare online orders and take them to customers’ cars. Customers will shop for orders and pay through the Costco website.
The Costco test comes as rivals as Walmart (WMT),, Kroger (KR) and Amazon (AMZN)Whole Foods-owned whole foods have also expanded their own curb offerings during the pandemic.

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.”

Costco, which operates on low profit margins, also says it is too expensive for its business to have employees dedicated to assembling customer orders and taking them out in their cars.

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.

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