Shares in Costco (COST) were lower today, despite expanding same-day delivery services in Europe from Paris to Madrid.
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France and Spain Delivered
Costco Wholesale said it and Instacart were expanding their North American partnership into Europe, with the launch of Costco’s first-ever same-day delivery websites in France and Spain.
Costco said that the initial rollout includes delivery from all Costco locations in France and Spain, including locations in the Paris metropolitan area and Mulhouse in France, as well as Bilbao, Madrid, Seville, and Zaragoza in Spain.
Instacart is partnering with European partner companies in each country at launch for the picking, packing and delivery of orders.
“Costco has been a trusted partner for many years in North America, and we’re incredibly proud to expand that relationship into Europe,” said Chris Rogers, Chief Executive Officer and Chair of Instacart. “Powering Costco’s online ordering and delivery program in France and Spain is a testament to the strength of our enterprise e-commerce technology suite, and allows Costco to launch delivery in a way that’s scalable.”
“Online ordering and delivery gives members in France and Spain greater flexibility in how they shop Costco’s assortment and build on the services we already offer,” said Pierre Riel, Executive Vice President, Costco Wholesale International Division at Costco Wholesale.
Costco Goes Global
Instacart currently supports delivery from Costco locations across the U.S. and Canada and powers Costco’s Same-Day websites, through its Storefront Pro technology. The expansion into France via sameday.costco.fr and Spain via sameday.costco.es builds on this foundation.
It is also helping Costco’s European and global expansion plans and international revenues – see below:
The company’s international and domestic expansion continued with eight new warehouse openings in Q1, contributing to a total of 921 warehouses globally, and plans for 30-plus net new openings annually in future years.
Is COST a Good Stock to Buy Now?
On TipRanks, COST has a Strong Buy consensus based on 19 Buy, 4 Hold and 1 Sell ratings. Its highest price target is $1,205. COST stock’s consensus price target is $1,065.50, implying a 13.84% upside.
