Costco Expands Grocery Delivery with Tech-Driven Innovations

Costco has acquired Innovel Solutions, a logistics firm, to enhance its grocery delivery services. This move aims to speed up the delivery of big and bulky items, such as furniture and refrigerators, by leveraging advanced logistics and white-glove capabilities.

Costco Wholesale has made a significant move in the retail industry by acquiring Innovel Solutions, a third-party logistics business, for \$1 billion. This acquisition is designed to improve the speed and efficiency of delivering big and bulky items, such as furniture and major appliances, to its customers.
Innovel Solutions, formerly a logistics arm of Sears, has been providing “final mile” delivery and installation services for decades. The company operates 11 distribution/fulfillment centers, over 100 final-mile cross-dock centers, and more than 15 million square feet of warehouse space. It consistently ranks high in customer satisfaction scores, which aligns with Costco’s commitment to member satisfaction.
The acquisition will support Costco’s e-commerce growth by streamlining the delivery process for bulk items. Costco CEO Craig Jelinek stated that the acquisition will allow the company to grow its e-commerce sales of big and bulky items at a faster rate. Innovel will continue to serve Sears and other existing third-party customers under Costco’s ownership.
This move reflects Costco’s ongoing efforts to enhance its customer experience through technological advancements and strategic acquisitions. By integrating Innovel’s expertise, Costco aims to maintain its competitive edge in the retail market.

What is the purpose of Costco’s acquisition of Innovel Solutions?
Answer: The purpose is to enhance the delivery of big and bulky items, such as furniture and refrigerators, by leveraging advanced logistics and “white-glove capabilities.”
What services does Innovel Solutions provide?
Answer: Innovel Solutions provides “final mile” delivery, installation, and “white-glove capabilities” for big and bulky products across the U.S. and Puerto Rico.
How many distribution/fulfillment centers does Innovel operate?
Answer: Innovel operates 11 distribution/fulfillment centers.
What is the total square footage of warehouse space operated by Innovel?
Answer: Innovel operates more than 15 million square feet of warehouse space.
Will Innovel continue to serve Sears and other third-party customers?
Answer: Yes, Innovel will continue to serve Sears and other existing third-party customers under Costco’s ownership.

Costco’s acquisition of Innovel Solutions marks a significant step in enhancing its grocery delivery services. By integrating advanced logistics and white-glove capabilities, Costco aims to improve the delivery experience for its customers, particularly for big and bulky items. This strategic move underscores Costco’s commitment to technological innovation and customer satisfaction.