Costco's business is increasingly living outside its physical stores. Modern Retail reported that the retailer's digitally-enabled sales exceeded $33 billion during fiscal year 2026, including orders placed through third-party delivery platforms. This represents growth of more than 20% in the period. CEO Ron Vachris attributed this expansion to new partnerships with DoorDash and Uber Eats, both of which rolled out nationwide this fall following limited regional pilots. The scale of this business illustrates how aggressively warehouse clubs are building sales channels beyond their warehouse footprints.
Delivery orders require membership verification at checkout. Customers using DoorDash or Uber Eats must provide their Costco membership number to access the service, a requirement that gates the benefit to cardholders only, ensuring all transactions remain linked to active memberships. This model complements Costco's established relationship with Instacart, operating since 2016 in the U.S. and Canada.
Younger members are the primary target of these delivery partnerships. Those under 40 have grown more than 60% since the pandemic and now represent more than a quarter of Costco's entire membership base.
This commercial strategy prioritizes member lifetime value over immediate transaction volume.
Vachris noted that delivery sales are largely incremental to warehouse traffic, meaning Costco's high-margin grocery business absorbs no material cannibalization. That framing reveals the real strategic purpose: acquiring members at lower initial spending levels, knowing they will eventually graduate to higher-value purchasing. For a membership model, this is powerful. A member beginning with occasional delivery orders but gradually transitioning to warehouse visits and gas purchases generates far greater lifetime value relative to acquisition cost. This strategy is particularly valuable as Costco works to attract younger demographics who may lack their parents' warehouse-shopping habits.
Costco's full-year performance demonstrates broad-based strength. Net sales reached $297.2 billion, up 10% year over year, with pharmacy sales rising 20% and gas purchases hitting an all-time high. Engagement with prescription services, including GLP-1 weight-loss drugs and fertility programs, also contributed to pharmacy growth.