I’m the type of person who prefers to shop online whenever possible. The way I see it, why battle crowds when you can point and click your way to the products you want?

But if there’s one store I typically shop at in person, it’s Costco. And there’s a reason for that.

First of all, I buy a lot of fresh groceries at Costco. Buying those online means having to pay more for delivery. At a time when grocery prices are up 2.4% year over year, according to December’s Consumer Price Index, I’d rather not spend the extra money.

Also, a big part of the Costco shopping experience is getting to wander the store and enjoy the treasure hunt experience. 

But during Costco’s last earnings call, the company shared that more and more members are starting to shop digitally. And that could lead to big changes in Costco’s operating strategy.

Costco is seeing an increase in digital traffic.

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Digital traffic at Costco is up

During Costco’s most recent earnings call, the company shared that traffic increased 3.1% on a worldwide basis. Just as impressively, Costco’s average transaction was up 3.2% worldwide, both with and without accounting for the impacts of gas price deflation. 

But it’s not just that in-store traffic and transactions are up. Costco also announced that digitally enabled comparable sales surged 20.5% in the quarter, highlighting the importance of digital channels as a key part of the member shopping experience. This growth was supported by a 24% increase in site traffic and a 48% jump in app traffic.

Related: Costco makes key changes to its bakery

That growth isn’t accidental, though. 

Costco has been investing in its digital footprint to improve the shopping experience for members. 

As CEO Ron Vachris shared on the company’s 2026 Q1 earnings call, “We aim to make shopping at Costco easier, faster, and more personal, no matter where or how our members choose to shop. This isn’t about technology for technology’s sake. It’s about using technology to strengthen the fundamentals that make Costco who we are.”

What an increase in digital sales means for Costco’s future

Costco’s strategy has long focused on doing whatever it takes to get members into the store. That’s because members have a tendency to make impulse purchases when they see new products in person.

It’s for this reason, in fact, that Costco has long resisted offering curbside pickup. The company wants members wandering the aisles rather than simply shopping from a preset list. 

Related: Costco quietly added a major credit card perk

But Costco’s most recent earnings presentation made it clear that warehouse club visits and digital transactions can complement each other rather than compete with each other. 

While plenty of shopping still happens in stores, the fact that more and more members are shopping online reflects a big shift that Costco needs to capitalize on. As such, it makes sense for Costco to further invest in its app and website, as well as introduce tools to improve the shopping experience.

As retail research firm Zacks said, “Costco Wholesale Corporation’s digital ecosystem has become a primary growth driver, supporting member engagement and sales growth.”

Zacks also noted, “The company is taking all possible measures to make shopping easier and more personalized. This includes improved product display pages that have led to higher conversion rates and continued upgrades to search capabilities.”

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Leaning into digital sales may not be the most comfortable thing for a company that’s long done everything in its power to lure members into stores. But as Costco continues to invest in the digital experience, it may find that members turn to the website or app to make “in-between visit” purchases. And that’s just extra revenue for Costco to enjoy.

All told, continuing to invest in digital technology could substantially boost Costco’s bottom line. And if improvements make digital shopping easier, then members get to benefit, too.

Maurie Backman owns shares of Costco.

Related: Costco quietly lowered prices on key items