Costco Launches Same-Day Online Sales in Spain
Costco, the American chain with over a decade of operation in Spain, has launched an online sales service offering same-day delivery. Partnering with Instacart, a well-known delivery platform, Costco aims to replicate its massive North American success in the Spanish market. While the chain has struggled to make significant inroads, it remains confident that its large-scale American business model can resonate with Spanish consumers.
Understanding Costco’s Unique Model
Costco operates on a model distinct from traditional Spanish supermarkets, which typically rely on a membership structure priced at about 36 euros per year. With expansive warehouses exceeding 15,000 square meters, the chain emphasizes wholesale purchasing. Now, Costco is venturing into a domain where its primary competitor, Mercadona, has already established a strong presence—home delivery.
How the Same-Day Delivery Works
Members can easily place orders via Costco’s website. Deliveries are available on the same day in Madrid, Bilbao, Seville, and Zaragoza—the four cities where Costco has physical locations. Prices mirror in-store rates, but there is a fixed service fee of 15 euros per order, alongside a minimum purchase requirement of 35 euros.
Costco’s Logistics and Instacart Partnership
Instacart oversees the logistics through Storefront Pro, collaborating with various “European partner companies” to manage the selection, packaging, and delivery of orders. This operational model adheres to local laws and market conditions.
As reported by CincoDías, Instacart’s operations in the US are rooted in a ‘gig economy’ model, allowing delivery staff to select their orders and receive compensation only for completed deliveries. This framework spurred the Spanish government to enact the Rider Law in 2021, which mandates the hiring of delivery drivers.
Costco’s Strategic Vision in Spain
Costco is focused on maintaining a loss-controlled strategy while simultaneously increasing market share. As of October, it was reported that Costco’s Spanish subsidiary had incurred losses totaling 150 million euros since 2014. However, sales surged to 607 million in 2024, showing a 15% increase in membership. By enhancing its online sales channel, Costco aims to accelerate growth without the costly and time-consuming need for new physical stores.
Comparative Market Analysis
Mercadona leads the Spanish market with a 28% share, achieved through strategically located stores and optimized operational margins. In contrast, Costco focuses on high volume, customer loyalty, and gradual market penetration. Whether Costco’s online service will attract a broader customer base and affirm the viability of its American hypermarket model in Spain remains to be seen.
European Expansion Plans
In addition to Spain, Costco has also launched the same service in France, specifically in the metropolitan areas of Paris and Mulhouse. “This step enables a new level of accessibility and ease for its members,” remarked Chris Rogers, CEO of Instacart. Pierre Riel, executive vice president of Costco’s International Division, emphasized that the new service complements existing offerings and is instrumental in making Costco more accessible to members.
Cover image | Marcus Reubenstein
For insights on supermarket trends, read about how white labels have become foundational to the Spanish diet.