Here's How Costco Logistics Is Boosting Big and Bulky Sales Online

Costco Wholesale Corporation COST has been steadily expanding its digital footprint, with its logistics arm emerging as a key driver behind the strong growth in online sales of big and bulky items. E-commerce comparable sales rose 13.6% in the final quarter of fiscal 2025, while total digitally enabled sales surpassed $27 billion for the year. A major contributor to this momentum was Costco Logistics.

Member trust and adoption are clearly reflected in operational metrics. The company completed its 15th straight quarter of enhanced member experience scores on Costco Logistics deliveries. Management credited these results to operational improvements and the seamless coordination between digital ordering and physical fulfillment. Costco Logistics recorded a 13% year-over-year increase in the number of items delivered. 

The company’s investment in logistics capacity has strengthened member satisfaction and repeat engagement. E-commerce site traffic surged 27% during the fourth quarter, led by strong growth in gold and jewelry, housewares, apparel, tires, sporting goods, majors, small electrics, and garden and patio categories.

The sustained strength in big and bulky categories highlights members’ confidence in Costco’s delivery reliability and its ongoing investment in logistics infrastructure. The service includes professional installation and the haul away of old items. As digital engagement deepens, Costco’s ability to deliver heavy items efficiently is proving central to sustaining its e-commerce momentum.

What the Latest Metrics Say About Costco

Costco, which competes with Dollar General Corporation DG and Target Corporation TGT, has seen its share rise 2.8% in the past year, underperforming the industry’s growth of 5.7%. While shares of Dollar General have rallied 20.3%, Target has declined 38.2% in the aforementioned period.
 

From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 44.93, higher than the industry’s ratio of 29.37. COST carries a Value Score of D. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 11.69) and Dollar General (15.12). 
 

The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 7.7% and 11%, respectively. 
 

Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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