Costco’s digital sales hit $33 billion in 2026, growing more than 20%
Costco’s business is increasingly living beyond the doors of its core warehouses.
During its fiscal fourth-quarter and full-year earnings call on Thursday, Costco CEO Ron Vachris said that digitally-enabled sales — which include sales from third-party delivery platforms — exceeded $33 billion dollars during the fiscal year, and grew more than 20%.
Partnerships with delivery platforms have been key to fueling this digital growth. In the U.S., Costco has announced within the past month that members will now be able to get delivery nationwide through both DoorDash and Uber Eats. Customers have to enter their membership number at checkout to prove they are a Costco member.
“We’ve observed that these sales through these channels are mostly incremental, with limited impact on our core warehouse grocery business,” Vachris said. “These partnerships will complement the successful long-term partnerships that we’ve had with Instacart in the U.S. and Canada.” Costco first piloted a grocery delivery service with Instacart in 2016.
Costco initially trialed the Uber Eats partnership in 17 states before announcing in mid-September that it would be rolling out nationwide.
Additionally, these platforms are also helping Costco attract a younger customer, Vachris said. Since Covid, the number of Costco members under 40 has grown more than 60%, and these members now account for more than a quarter of Costco’s total membership base.
“While these younger members start out spending a little less with us, over time, they grow into higher-spending members,” Vachris said.
Overall, Costco’s business shows no signs of slowing down — and the club retailer has multiple levers to pull to get its members to spend more.
For the full year, Costco saw net sales of $297.2 billion, up 10% year over year. The percentage of Costco members who purchased gas hit an all-time high, Vachris said, as consumers sought to save money on gas in the face of the Iran War. Costco’s pharmacy business grew 20% during the year, Vachris said, as the company expanded digitally-enabled purchasing capabilities like mobile pay ahead and pickup lockers. GLP-1 drugs and fertility programs also proved popular.
But what digital platforms like DoorDash and Uber Eats are particularly helpful for, Vachris said, is attracting a new type of customer who will become more valuable over time.
“While these younger members start out spending a little less with us, over time, they grow into higher-spending members,” Vachris said.