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Costco's Digital Sales Outpace Store Comps as Shopping Evolves
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Key Takeaways
Costco's October digital sales rose 22.5%, outpacing the 11.1% gain in companywide comparable sales.
Nationwide Uber Eats and DoorDash coverage expands Costco's delivery reach, with average times under an hour.
Costco's site and app traffic jumped 30% in Q4, while personalized initiatives drove triple-digit growth.
Costco Wholesale Corporation’s (COST - Free Report) digitally enabled sales continue to outpace its broader comparable sales performance, highlighting the growing importance of digital shopping within its warehouse-centered business model. For the retail month of October — the four-week period ended Nov. 1, 2026 — digitally enabled sales increased 22.5% year over year compared with an 11.1% rise in companywide comparable sales. Excluding foreign exchange, digitally enabled sales advanced 22.6%, underscoring continued strength in the channel.
During the first nine weeks of fiscal 2027, digitally enabled sales climbed 20.5% versus an 11.3% increase in overall comparable sales. This follows a strong fourth-quarter fiscal 2026 performance, when digitally enabled comparable sales grew 19.5%, significantly ahead of the company's 9.4% comparable sales gain. Digital growth has remained consistently above the broader business, reflecting increased member engagement through online shopping and delivery options. During fiscal 2026, digitally enabled sales exceeded $33 billion, increasing more than 20%.
The company has expanded its delivery capabilities, extending its Uber Eats partnership nationwide in the United States and adding DoorDash coverage across the country. These services complement its established Instacart relationship, giving members more flexibility in how they purchase merchandise. Management highlighted average delivery times of less than an hour across the three platforms, with younger members particularly receptive to the convenience.
Costco continues to refine its digital shopping experience through better product placement, personalized emails, and improvements to its website and mobile app. Fourth-quarter site and app traffic increased 30%, while personalized initiatives generated triple-digit sales growth. Management indicated that these digital transactions are largely incremental, with limited displacement of warehouse purchases. The combination of convenience, personalization and traditional warehouse shopping illustrates how Costco is adapting to changing purchasing habits while keeping its physical stores central to the member experience.
Focus on Peers — Walmart & Target's Digital Sales Momentum
Walmart Inc. (WMT - Free Report) is witnessing strong digital momentum, with global e-commerce sales rising 23% in second-quarter fiscal 2027, significantly outpacing overall revenue growth of 5.9%. Walmart U.S. e-commerce sales increased 24% compared with comparable sales growth of 2.6%. Store-fulfilled delivery, marketplace expansion and faster fulfillment supported this performance. Walmart's continued investments in omnichannel capabilities are strengthening shopping convenience and customer engagement across its digital platforms.
Target Corporation (TGT - Free Report) is also benefiting from growing digital engagement, with comparable digital sales increasing 8.7% in second-quarter fiscal 2026, outpacing comparable-store sales growth of 2.7%. Same-day delivery sales rose more than 25%, highlighting demand for convenient fulfillment options. Target is enhancing its digital experience through AI-powered recommendations, personalized app content and technology investments. These initiatives are helping Target connect with shoppers across channels while improving purchasing convenience.
How Does Costco Stack Up Against Its Industry?
Costco stock has climbed 22.2% year to date compared with the industry’s rise of 15.4%.
Image Source: Zacks Investment Research
What Does Costco’s Current Valuation Suggest?
Costco's forward 12-month price-to-earnings ratio stands at 45.56, higher than the industry’s ratio of 29.39. The stock is also trading above its 12-month median level of 44.12, indicating a premium valuation that reflects elevated investor expectations.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Costco?
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 8.5% and 11%, respectively. For the next fiscal year, the consensus estimate indicates 7.2% sales growth and 9.9% earnings growth.
Image Source: Zacks Investment Research
Costco’s Investment Case
Costco’s strong digital sales momentum, expanding delivery capabilities and loyal membership base reinforce its long-term growth prospects. Continued warehouse expansion and improving digital engagement strengthen its competitive position. However, the stock’s premium valuation limits near-term upside potential despite encouraging earnings expectations. Investors may want to hold existing positions while waiting for a more attractive entry point. Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Costco's Digital Sales Outpace Store Comps as Shopping Evolves
Key Takeaways
Costco Wholesale Corporation’s (COST - Free Report) digitally enabled sales continue to outpace its broader comparable sales performance, highlighting the growing importance of digital shopping within its warehouse-centered business model. For the retail month of October — the four-week period ended Nov. 1, 2026 — digitally enabled sales increased 22.5% year over year compared with an 11.1% rise in companywide comparable sales. Excluding foreign exchange, digitally enabled sales advanced 22.6%, underscoring continued strength in the channel.
During the first nine weeks of fiscal 2027, digitally enabled sales climbed 20.5% versus an 11.3% increase in overall comparable sales. This follows a strong fourth-quarter fiscal 2026 performance, when digitally enabled comparable sales grew 19.5%, significantly ahead of the company's 9.4% comparable sales gain. Digital growth has remained consistently above the broader business, reflecting increased member engagement through online shopping and delivery options. During fiscal 2026, digitally enabled sales exceeded $33 billion, increasing more than 20%.
The company has expanded its delivery capabilities, extending its Uber Eats partnership nationwide in the United States and adding DoorDash coverage across the country. These services complement its established Instacart relationship, giving members more flexibility in how they purchase merchandise. Management highlighted average delivery times of less than an hour across the three platforms, with younger members particularly receptive to the convenience.
Costco continues to refine its digital shopping experience through better product placement, personalized emails, and improvements to its website and mobile app. Fourth-quarter site and app traffic increased 30%, while personalized initiatives generated triple-digit sales growth. Management indicated that these digital transactions are largely incremental, with limited displacement of warehouse purchases. The combination of convenience, personalization and traditional warehouse shopping illustrates how Costco is adapting to changing purchasing habits while keeping its physical stores central to the member experience.
Focus on Peers — Walmart & Target's Digital Sales Momentum
Walmart Inc. (WMT - Free Report) is witnessing strong digital momentum, with global e-commerce sales rising 23% in second-quarter fiscal 2027, significantly outpacing overall revenue growth of 5.9%. Walmart U.S. e-commerce sales increased 24% compared with comparable sales growth of 2.6%. Store-fulfilled delivery, marketplace expansion and faster fulfillment supported this performance. Walmart's continued investments in omnichannel capabilities are strengthening shopping convenience and customer engagement across its digital platforms.
Target Corporation (TGT - Free Report) is also benefiting from growing digital engagement, with comparable digital sales increasing 8.7% in second-quarter fiscal 2026, outpacing comparable-store sales growth of 2.7%. Same-day delivery sales rose more than 25%, highlighting demand for convenient fulfillment options. Target is enhancing its digital experience through AI-powered recommendations, personalized app content and technology investments. These initiatives are helping Target connect with shoppers across channels while improving purchasing convenience.
How Does Costco Stack Up Against Its Industry?
Costco stock has climbed 22.2% year to date compared with the industry’s rise of 15.4%.
Image Source: Zacks Investment Research
What Does Costco’s Current Valuation Suggest?
Costco's forward 12-month price-to-earnings ratio stands at 45.56, higher than the industry’s ratio of 29.39. The stock is also trading above its 12-month median level of 44.12, indicating a premium valuation that reflects elevated investor expectations.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Costco?
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 8.5% and 11%, respectively. For the next fiscal year, the consensus estimate indicates 7.2% sales growth and 9.9% earnings growth.
Image Source: Zacks Investment Research
Costco’s Investment Case
Costco’s strong digital sales momentum, expanding delivery capabilities and loyal membership base reinforce its long-term growth prospects. Continued warehouse expansion and improving digital engagement strengthen its competitive position. However, the stock’s premium valuation limits near-term upside potential despite encouraging earnings expectations. Investors may want to hold existing positions while waiting for a more attractive entry point. Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.