Costco, the American chain that has been operating in Spain for more than ten years, has recently launched your online sales service with delivery on the same day. It does so together with Instacart, a delivery platform with which it already collaborates in North America. It’s not that the chain is having great results in our country, but she is convinced that her large-scale American business model can end up being profitable in Spain.
What’s up with Costco?. The chain really represents in Spain the opposite of the model that predominates in the country: it charges for membership (about 36 euros per year), operates with giant warehouses of more than 15,000 square meters and sells products in a wholesale format. Now it goes one step further and enters a field that Mercadona, which we could consider its rival (although with different concepts), has already dominated for a long time: home delivery.
How it works. Costco members in Spain can place orders through your website and receive them on the same day in Madrid, Bilbao, Seville and Zaragoza, the four cities where the chain has a physical presence. Prices are the same as in store, but there is a fixed service fee of 15 euros per order and a minimum purchase of 35 euros.
The logistics model. Instacart, which manages the operation through Storefront Pro, says it will work with “European partner companies” for the selection, packaging and delivery of orders. According to its official statement, the logistics models “align with local laws, regulations and market conditions.”
Just like account CincoDías media, in the United States, Instacart operates with a ‘gig economy’ model in which delivery people only charge for deliveries made, choose the orders they prefer and are rated by customers. This system, precisely, is what motivated the Government in Spain to approve Rider Law in 2021, which forces delivery workers to be hired.
Between the lines. Costco maintains its loss-controlled strategy while building market share. Just like we explained In October, at that time the Spanish subsidiary had accumulated 150 million euros in the red since 2014, although in 2024 its sales shot up to 607 million and added 15% more partners. Now it is betting on a channel that can accelerate its growth without having to open more physical centers, something expensive and slow.
The clash of models. Mercadona dominates Spain with a 28% market share, having achieved this through stores close to its customers and optimized margins. Costco, for its part, pursues volume, loyalty and gradual expansion. It remains to be seen whether or not the arrival of the online service can attract more customers and whether the American hypermarket model also has a place in Spain.
Expansion in Europe. Along with Spain, Costco has launched the same service in France, where it operates in the metropolitan area of Paris and Mulhouse. “This step enables a new level of accessibility and ease for its members,” said Chris Rogers, CEO of Instacart. For his part, Pierre Riel, executive vice president of Costco’s International Division, stressed that the service “complements the services we already offer” and represents “another step to make Costco more accessible.”
Cover image | Marcus Reubenstein
GIPHY App Key not set. Please check settings