Dive Brief:
- Costco is courting younger shoppers with improved digital features and building its online and in-store experiences to build loyalty with this cohort, EVP and CFO Gary Millerchip said on a Q4 2026 earnings call Thursday.
- The pursuit of younger shoppers has required Costco to improve its digital member experience, according to Millerchip. Efforts in personalization have been a key part of this investment.
- Partnerships play a role as well. Members who use its delivery options, including the DoorDash and Uber Eats partnerships that expanded nationwide last week, are “significantly younger than our overall member base,” CEO Ron Vachris said.
Dive Insight:
Costco’s digital enhancements are paying off with improved sales as the warehouse club retailer works to deepen loyalty with its younger members.
The number of Costco members under 40 has grown almost 60% since the COVID-19 pandemic, according to Vachris. As a result, these shoppers now account for more than one-quarter of Costco’s member base.
“While these younger members start out spending a little less with us, over time, they grow into higher spending members,” Vachris said.
Younger consumers are generally signing up for a Costco membership through a phone, laptop or iPad, according to Millerchip. While these members start their customer journeys with a digital-first approach, Costco isn’t discounting the importance of its stores.
“We certainly see it as a different way for members to enter into the Costco experience, but the warehouse continues to be hugely important to the value that we offer for members to create a differentiated experience,” Millerchip said.
Millerchip cited a recent media article about how younger consumers are engaging with the treasure hunt experience a Costco warehouse can offer. He also highlighted the role Costco associates have in engaging with shoppers and building brand loyalty.
While Costco won’t necessarily change its warehouse experience to capture more loyalty from younger cohorts, their habits showcase the value of having a strong combined experience across its channels, according to Millerchip.
“We definitely see that where members engage with us through the warehouse and they're engaged through the digital app or engaging through digital channels, they're even more loyal and shopping more frequently not just online, but also in the warehouse as well,” Millerchip said.
Costco’s ongoing personalization push is part of this effort, and it is continuing to drive results, according to Millerchip, The retailer saw triple-digit sales growth from personalized initiatives in the fourth quarter, and 10% of all costco.com orders included a personalized item.
Costo’s overall financial results were strong. Net sales rose 11.2% year over year to $93.9 billion in the fourth quarter of 2026, according to an earnings report. Same-store sales rose 9.4% year over year.
