Costco Wholesale Corporation (COST) Stock: Digital Growth Accelerates After Marketplace Exit

TLDR

Table of Contents

Costco stock rises 0.22% to $924.83 as digital sales exceed $33 billion
Digitally enabled sales grew more than 20% during Costco’s latest fiscal year
Costco closed Costco Next and will shift popular products to core platforms
Uber Eats and DoorDash expansions strengthen Costco’s U.S. delivery reach
Costco site and app traffic rose 30% as personalization gained momentum

Costco Wholesale Corporation (COST) stock rose 0.22% to $924.83 as the retailer expanded its digital operations. Digitally enabled sales exceeded $33 billion and grew more than 20% during the latest fiscal year. Costco closed its Next marketplace and shifted focus toward its main website and mobile application.

Costco Wholesale Corporation, COST

Costco Digital Sales Gain From Delivery Expansion

Costco has increased online investment while keeping its warehouse membership model at the center of operations. The company now uses outside delivery partners to widen access without building every service internally. That approach has supported stronger digital sales and broader member engagement.

Costco expanded its Uber Eats partnership from 17 states across the entire United States. It also widened its DoorDash relationship, while Instacart continues serving members in the United States and Canada. These partnerships give members more delivery options and extend Costco’s reach beyond warehouse visits.

Digital activity also increased across Costco’s website and mobile application during the fourth quarter. Site and app traffic rose 30% as the company improved personalized product placements and email communications. Personalized initiatives generated triple-digit sales growth during the quarter.

Costco Next Closure Changes Online Product Strategy

Costco closed Costco Next in September after operating the marketplace since 2017. The service gave members access to selected products that Costco did not regularly stock in warehouses. Vendors shipped those purchases directly and handled returns for their products.

The marketplace offered discounts reaching 40% across categories including electronics, luggage, and home goods. Costco kept the platform curated instead of operating a large open marketplace like Amazon. Management later changed direction as Costco’s main digital channels became more capable.

Costco now plans to integrate popular Costco Next products directly into Costco.com and its application. The company expects that move to simplify shopping and support sales through established online channels. Management also said the marketplace closure would not materially affect Costco’s financial results.

Personalization and AI Search Support Online Growth

Costco continues to improve digital merchandising as more members use its online services. About 10% of Costco.com orders now include at least one personalized product. This approach helps the company connect members with relevant merchandise through its existing digital platforms.

Traffic from AI search tools also increased at a triple-digit rate for a second consecutive quarter. Costco said those visits produced the highest conversion rate among all website traffic sources. AI search still represents a smaller traffic source than Costco’s established digital channels.

The company continues combining delivery, personalization, and digital product discovery with its warehouse model. Closing Costco Next concentrates more activity inside Costco’s primary website and mobile application. As digital sales expand, Costco is simplifying online access while preserving its membership-focused retail structure.

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