Costco Has A Really Big Plan That Will Delight Members

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Costco opens 25 new warehouses worldwide each year and relocate existing locations to make them bigger. Fresno will host the chain's largest store.

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The 22.5-acre site would have 32 gas pumps, an automatic vehicle wash, and 241,000 square feet of shipping and storage space. Costco's largest location would be closed to members.

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Costco's home delivery service's 47,000-square-foot market delivery operation (MDO) would be located in the club's southwest. MDO facilities process, load, and transport large items to Costco members everyday.

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That's a lot of room for a business the chain hasn't prioritized, suggesting a shift to a new model. Costco delivers large items from separate sites. Walmart and Target do it in many of their stores.

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Costco may wish to reverse its e-commerce decline. The chain's third-quarter earnings call CFO noted that digital sales dropped.

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He stated, "You saw in the release that e-commerce was a minus 10% sales decline on a comp basis...more to the same story in terms of sales, as I discussed on our second quarter call and in our monthly sales recordings."

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In Q3, majors, home furnishings, small electrics, jewelry, and hardware represented up 55% of e-com sales and were down 20%. "These departments were down 17% in warehouse sales, but they only make up 8%," he said.

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"And we've really, over the last six to nine months, started a two-year road map to enhance and replatform our primary online store, and the same goes for our mobile apps and mobile site," he said.

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"Working again with data analytics, architects, and business users, we're building and dramatically increasing our engineering capabilities."

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