Costco’s E-Commerce Climb

As consumers spend more time at home during the COVID-19 crisis, relying on the internet for entertainment and essential services alike, consumer behavior has shifted to a growing share of traffic coming from desktop, surging by between 50% and 70% according to Gartner’s Digital IQ Index: Big Box. As such, Costco’s continued experimentation of digital tools has been well timed. For example, the store began testing curbside pickup at three of its locations in Albuquerque, New Mexico last January. Though consumers were making less trips to the grocery store, their baskets were getting bigger each time. Costco’s memberships soared $65 million from last year as a result, and e-commerce sales were up 75%.

Which aisles were most popular during this period of growth? Costco saw particularly robust online sales from over the counter and pharmacy, garden and patio, small electrics, health and beauty, and categories such as consumer electronics.