Costco sees major shift in member behavior
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Costco is one of those stores where it's hard to imagine what it feels like to shop there unless you've done it yourself. Even though I've been a Costco member for roughly 20 years, there are times when I still marvel at the store's massive size, impressive inventory, and ever-changing layout.In fact, during the Covid pandemic, when there were strict rules about how many customers Costco would allow in the store at a time, I took to ordering from Costco online because I couldn't deal with waiting in long lines outdoors just to get in. But during that time, I missed the in-store Costco shopping experience tremendously.And that's an experience in which Costco has invested heavily.Costco wants members to be excited about shopping at the store in person. The company routinely sources and places its inventory strategically to get members to spend more. If you're a Costco member who wants to know why the company won't offer curbside pickup when rival Sam's Club has done so for a long time, the answer is simple. Costco's favorite shoppers are in-person shoppers. But a growing number of Costco members are starting to buy their favorite products in a different way. Costco wants members to be excited about shopping at the store in person. Shutterstock Digital sales are up at CostcoIf there's one thing Costco has taken plenty of criticism over through the years, it's the fact that the digital experience could use some improvement.But Costco has clearly been listening to that feedback and acting on it. And the company's efforts are paying off. Related: Shoppers furious at grocery chain’s new anti‑theft ruleDuring the company's last fiscal quarter, digitally enabled comparable sales rose 20.5% from a year prior, as Costco reported on its most recent earnings call. That figure significantly outpaced overall comparable sales growth of 6.4%. Costco also reported that digital site traffic was up 24% during the quarter, while app traffic was up 48%.CEO Ron Vachris told investors, "Our digital vision at Costco is to deliver a seamless experience that builds trust and loyalty with our members both in warehouse and online."CFO Gary Millerchip said he was happy to see an increase in digital engagement. "We continue to be pleased with the momentum that we're seeing in digital engagement with our members, and our expectation would be that digital sales as we define it would continue to grow at a fast pace over the longer term."Digital sales could help Costco, or hurt itCostco is clearly invested in improving the digital experience so it drives sales. "We continue to see many opportunities to enhance digital engagement with our members and look forward to sharing progress," Millerchip said.But encouraging digital orders does, in a way, go against Costco's core strategy of encouraging members to walk in the door, keeping them excited about inventory, and hoping they make extra purchases on top of the things they were coming in to buy.Related: Costco quietly lowered prices on key itemsIt's a strategy that has long served Costco well. But if more and more consumers take to ordering from Costco online, the company risks losing out on unplanned purchases spurred by the in-store treasure hunt experience.This doesn't mean Costco shouldn't keep working to improve its website and app. But the company may need to get even more strategic if it wants customers to keep shopping in person.As it is, Costco took a big step in 2025 to get more people in the door – adding early shopping hours for Executive members as well as an extra hour on Saturdays for all members. That decision led to an uptick in sales, as the company reported. More Retail:Costco CFO makes rare pricing promiseHome Depot faces growing consumer boycott calls ahead of holidaysTarget’s efforts to make amends with customers hit a snagAmazon lawsuit could be a warning to other employers"We've been very pleased with the membership response to the extended operating hours," Millerchip said. Now, the company needs to build on that momentum and find more ways to get shoppers in the door, especially as members increasingly look to make their Costco purchases digitally.Maurie Backman owns shares of Costco.Related: Dollar Tree raises prices again, frustrating budget shoppers