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CEO Ron Vachris said Costco launched new personalization capabilities in Q1 to "provide members with more relevant product recommendations based on their past search history."

Costco ecommerce sales outpaced total growth in its fiscal Q1 2026, even as it opened eight new warehouses in the quarter.

The increases come as Costco’s total net sales reached $65.98 billion in its fiscal Q1 2026, which ended Nov. 23, 2025. That was up by 8.2% from net sales in the same period a year ago. Net sales accounted for 98% of revenue in the quarter, the remainder of which came from membership fees.

Meanwhile, Costco comparable sales increased 6.4%. Comparable sales refer to those made from the same stores that the retailer operated in the previous year. Costco comparable sales in the U.S. increased at the lowest rate of the three segments it defined, at 5.9%. In Canada, they increased 6.5%, while the rest of Costco’s international comparable sales grew 8.8%.

In total, traffic and shopping frequency increased 3.1% worldwide, according to chief financial officer Gary Millerchip. He noted that Costco’s average order value increased 3.2% worldwide as well.

And Costco’s U.S. stores set a Halloween record in selling 358,000 whole pizzas. That’s 31% more than it sold on Halloween 2024. Additionally, Costco bakeries in the U.S. set a record in the three days leading up to Thanksgiving, selling 3.5 million pies. On average, that’s more than 7,000 pies per U.S. location over a three-day period.

Costco is No. 7 in the Top 2000 Database. The database is Digital Commerce 360’s ranking of the largest online retailers in North America by their annual ecommerce sales. It’s also the fourth-largest Mass Merchant in the database.

Digital changes and AI integration at Costco

CEO Ron Vachris told investors on Costco’s quarterly earnings call that the retailer has a “digital vision.” Included in it is Costco delivering an ecommerce experience that builds trust and loyalty with members, in stores and online.

“We aim to make the shopping at Costco easier, faster and more personal, no matter where or how our members choose to shop,” Vachris told investors. “This isn’t about technology for technology’s sake. It’s about using technology to strengthen the fundamentals that makes Costco who we are, increasing member loyalty, driving top-line sales and improving efficiency in our operations so that we can bring goods to market at the lowest possible price.”

He said Costco has already made progress with tangible results. Vachris cited the Costco digital wallet and pre-scanning baskets before checkout in stores as improving members’ experience and the retailer’s productivity.

Additionally, he noted that Costco has integrated artificial intelligence (AI) into its business. One example is in its pharmacy inventory system, which compares drug pricing across vendors and “autonomously and predictively reorders inventory,” Vachris said. That has improved in-stocks to more than 98%, he added. The retailer plans to offer “pay ahead” online for its pharmacy transactions, Vachris said.

Costco is also in the process of deploying AI tools to improve its gas business, according to Vachris.

He told analysts on Costco’s earnings call that Costco plans to allow consumers to order cakes and deli trays online.

Costco ecommerce sales in Q1

In its fiscal Q1 2026, Costco ecommerce sales increased 20.5% year over year.

Vachris said Costco continues to make enhancements on its ecommerce website and app to improve members’ experience. In Q1, he said, Costco launched new personalization capabilities. Vachris said the new capabilities “provide members with more relevant product recommendations based on their past search history.” Without quantifying, he said the sales life from the enhancement “has been very positive.”

Also in Q1, Costco’s ecommerce website traffic increased 24% as app traffic grew 48% year over year. Same-day delivery also grew at a faster pace than overall Costco digital sales, according to Millerchip. Costco partners with Instacart for same-day delivery in the U.S., while partnering with Uber Eats and DoorDash internationally. He said website and app improvements drove “strong” digital traffic and sales growth.

Aside from food sales, the categories that led in Costco ecommerce sales in Q1 were:

  • Pharmacy
  • Gold and jewelry
  • Tires
  • Small electrics
  • Apparel
  • Large appliances and electronics (which Costco refers to as “majors”)

Each category grew ecommerce sales in the double digits year over year.

Then, after its Q1 ended, Costco set a new record for U.S. ecommerce sales on Black Friday. Millerchip said that in the U.S., Costco generated more than $250 million in non-food ecommerce sales on Black Friday. Also in the U.S., Costco Travel set an all-time daily sales record on Cyber Monday. It generated $100 million in gross bookings in the five days following Thanksgiving, Millerchip said. That’s a 12% increase from the same period in 2024.

How many members does Costco have?

Costco ended its Q1 with 81.4 million paid household members. That’s up 5.2% year over year. It’s also an increase from 81 million in Q4.

Of those, 39.7 million had paid executive memberships — 9.1% more than at the end of Q1 in its fiscal 2025.

Costco also ended Q1 with 145.9 million cardholders, a 5.1% year-over-year increase. That’s also up from 145.2 million cardholders in Q4.

In Q1, Costco generated about $1.33 billion in membership fee income. That’s 14% year-over-year growth. At the end of Q1, Costco’s U.S. and Canada membership renewal rate was 92.2%. Worldwide, it was 89.7%.

How many countries have a Costco?

As of the end of its fiscal Q1 2026, Costco operates 923 warehouses. Of those, 633 are in the United States and Puerto Rico. Listed by amount, the rest are in:

  • Canada (114)
  • Mexico (42)
  • Japan (37)
  • The United Kingdom (29)
  • South Korea (20)
  • Australia (15)
  • Taiwan (14)
  • China (7)
  • Spain (5)
  • France (3)
  • Sweden (2)
  • Iceland (1)
  • New Zealand (1)

Costco operates ecommerce sites in:

  • Australia
  • Canada
  • Japan
  • Mexico
  • South Korea
  • Taiwan
  • The United States
  • The United Kingdom

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Costco ecommerce sales.

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