Costco ended its Costco Next marketplace in September, CFO Gary Millerchip said, aiming to bring its most popular brands and items into the app and website for a better member experience and higher sales. He said the change is not material to results.
Available since 2017, Costco Next let members buy select products not stocked in warehouses, with discounts of up to 40%. Costco sold the goods, but vendors shipped them and handled returns; the closure notice directed eligible return and warranty inquiries to vendors.
On the same fourth-quarter call, CEO Ron Vachris said digitally enabled sales, including third-party delivery, exceeded $33 billion, up more than 20%. Costco also said its Uber Eats partnership was expanding from 17 states to nationwide and its DoorDash partnership was expanding to include the U.S.; Instacart serves the U.S. and Canada.
