Costco has begun offering its first curbside pickup service.
The service is available via the food retailer’s three locations in New Mexico.
Costco has yet to release a statement on the service. According to its consumer-facing website, however, the service is powered by Instacart and enables the retailer’s online shoppers to pick a 1-hour no-contact pickup window. Costco charges $10 for the service and requires a $100 minimum order. The service is available only to Costco members.
The growing popularity of online shopping is fueling more demand for curbside pickup. Online and other non-stores sales increased 23.9% during the holiday shopping period, reaching $209 billion, according to the National Retail Federation.
As it provides curbside pickup — at least to a limited number of shoppers — Costco is coming off a hot 2020. The retailer recently said it has continued to see an acceleration in same-store sales during 2020's challenging retail environment due to the company's efforts to create a safe space for shoppers. For instance, in the period ended Nov. 22, same-store sales at Costco increased 17%, an acceleration from Q4's 11.4% increase. Online sales jumped 86%. Net sales for the first quarter increased 16.9% to $42.35 billion from $36.24 billion last year.