Costco has one of the most loyal customer bases in retail, and there’s a good reason for that.
Members tend to believe they’re getting exceptional value for their money, whether it’s bulk products, home services, or eyeglasses.
But Costco’s value proposition also extends to some of the smaller purchases members have come to love.
The bakery is a perfect example.
Costco’s bakery has become a destination for members looking for inexpensive treats and celebration foods, but its cakes are arguably the biggest attraction. The retailer’s famously large sheet cakes offer a lot of servings at a price that can be difficult for traditional bakeries to match.
Now, Costco is making those cakes even easier to get.
Costco cakes can now come to you
For the first time, Costco customers can order custom cakes and party platters for delivery through Instacart.
The new service, announced Aug. 26, allows customers to order Costco’s custom sheet cakes and 10-inch round cakes online and have them delivered from warehouse locations nationwide. The selection also includes sandwich platters, shrimp trays, fruit platters, and other party foods.
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Customers can customize their cakes online and place their orders in advance, which could be particularly useful for birthdays, graduations, office celebrations, and other events where planning ahead matters.
“For nearly a decade, we’ve worked closely with Costco to expand the ways their members can shop online, and this is another exciting step in that partnership,” said Ryan Hamburger, chief commercial officer at Instacart.
“We’re proud to bring Costco’s beloved made-to-order bakery and deli to sameday.costco.com and the Instacart marketplace.”
Customers can now order Costco’s custom sheet cakes and 10-inch round cakes online and have them delivered through Instacart.Instacart
A big change that reflects a greater shift
Previously, getting one of Costco’s custom cakes generally meant making a trip to the warehouse to place and pick up the order. Now, members can handle the entire process online.
The change may seem small, but it removes one of the few inconveniences associated with one of Costco’s most popular bakery offerings.
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More importantly, it shows just how much Costco is increasingly using technology to make life more convenient for members, without abandoning the warehouse experience that remains central to the company.
The technology behind the new service is Instacart’s FoodStorm order management platform. It connects Costco’s bakery and deli teams directly with online orders, allowing employees to receive customized cake and platter requests and fulfill them for delivery.
That’s an important development for a retailer like Costco.
A warehouse club built around enormous stores and high-volume shopping isn’t necessarily the easiest business to move online. The fact that Costco is prioritizing changes like this shows how in tune it is with members’ needs.
The move also aligns with Costco’s broad strategy.
“In digital, we are making meaningful strides to deliver a more seamless and convenient experience for our members across the warehouse and online,” CEO Ron Vachris said during the company’s most recent earnings call.
For a company that relies heavily on membership fee revenue, it’s a strategic choice. And for members who prioritize convenience, it’s a definite win.
Maurie Backman owns shares of Costco.
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