Costco has started offering two-day delivery of dry groceries and same-day delivery service for fresh groceries in a bid to fight off competition from Amazon, Reuters reports.
Chief Financial Officer Richard Galanti announced the new service in a conference call to reporters Thursday. The two-day service would be free for online orders over $75 across the United States, while the same-day service—offered through partner Instacart—is available at 376 U.S. stores. Costco has a Baton Rouge location off Airline Highway.
The new offerings were a huge positive for Costco given the perception that it has been slow with its pace of digital transformation, says BMO Capital Markets Analyst Kelly Bania.
Groceries, while a low-margin business, bring more customers into stores, and major players including Wal-Mart and Target have poured millions into the area as they look to boost store traffic as well as online sales.
Competition has further tightened since Amazon bought Whole Foods and reduced prices at the upmarket grocer in August.
