Wholesale club giant expands online delivery options

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Wholesale club giant expands online delivery options

By Marianne Wilson - 10/06/2017
Costco Wholesale Club is upping its home delivery game for online food orders as the grocery delivery market continues to heat up.

The retailer has introduced a new two-day delivery service, called CostcoGrocer, for customers across the U.S. (with the exception of those in Alaska, Hawaii, and Puerto Rico.). The service, which has a fee of $3, offers delivery of non-perishable foods and sundries, with about 500 items available. The delivery fee is waived for orders over $75.

Costco is also expanding its same-day delivery partnership with Instacart to more markets. The program, which includes both dry and fresh foods, is available at some 375 Costco locations. It also is being expanded to include more products.

“There’ll be a number of additional U.S. locations planned – added between now and the end of calendar 2018 as our partnership expands,” Costco CFO Richard Galanti said during the company’s fourth quarter earnings call.

Costco's moves to expand online delivery come as Walmart and Target are also upping their games. On Oct. 3, Walmart announced it had acquired Parcel Inc., a last-mile delivery startup that specializes in delivery of perishable items and general merchandise to customers in New York City.

Target recently expanded the rollout of its next-day delivery service of household essentials, Target Restock, to eight new markets.