After holding out for quite some time compared to other food retailers, Costco has begun piloting curbside pickup for groceries in New Mexico. According to its website, same-day Costco Curbside Pickup via Instacart is available at three warehouse clubs where customers can select from about 2,000 grocery items, including fresh fruit and some nonfood products.
Costco’s website said the service costs $10 per order with a $100 minimum purchase. (Sounds like a high minimum, but have you ever left Costco for less than $200?)
Costco’s partnership with Instacart goes back about five years when it began offering same-day delivery at select clubs. The company now offers the service at all clubs.
When asked about a “buy online, pickup at store” service during a December earnings conference call, Costco CFO Richard Galanti said “We’re not rethinking it. We continue to look at it and scratch our heads a little bit. But at this juncture, we don’t have any current plan to do so.”
Costco’s hesitation is reportedly due to concerns about the space required inside stores for assembling and holding orders, and the impact on parking lots in high-volume stores, not to mention the cost of a curbside pickup program. Although Costco has not officially announced the three-store pilot in New Mexico, they are obviously testing the program.