Costco Tests Grocery Curbside Pickup in Select New Mexico Stores
ALBUQUERQUE, NM - Business strategies shift over time, and Costco is experiencing this in its latest program. After many years of holding off on grocery curbside pickup, the wholesaler is finally testing out a program for the service.
Richard Galanti, Chief Financial Officer, explained to CNN Business that Costco hoped to test the service in the small market of Albuquerque, New Mexico.
“We’re always trying different things. We still scratch our head a little bit on it. We figured we’d try it in a discrete market where there’s just a limited number of locations. And it’s really nothing more than a test at this point,” Galanti noted.
On its website, Costco is offering members at three stores same-day pickup on grocery and general items. According to the site, Costco outlines that there is a $100 order minimum to choose pickup, and a $10 fee on each order, due to the fact that the model “adds an additional expense to our low-cost business model and limited markup structure.”
Previously, the company only offered pickup on expensive items that were not grocery related.
The pandemic has shifted how many grocers do business, so it comes as no surprise that Costco would test out a service that many consumers are clamoring for. Will we soon see an expansion of this pilot program? AndNowUKnow will keep its eyes on the wire.