I've been a Costco member for about 20 years. And when I first signed up, my warehouse trips were pretty predictable.
I'd stock up on bulk groceries, grab a few household essentials, and somehow leave with far more snacks than I ever intended to buy.
Over time, though, Costco became much more than a place to buy giant jars of peanut butter and paper towels.
I've purchased tires, used Costco for home services, booked travel, and increasingly relied on its pharmacy.
That's part of a larger shift happening across the retailer as Costco continues turning its membership into something that delivers value well beyond the warehouse shelves.
The company's latest earnings show that strategy is paying off — especially in its pharmacy business, where Costco is expanding services while giving members more ways to save on prescription medications.
During Costco's third-quarter 2026 earnings call, CFO Gary Millerchip highlighted pharmacy as one of the company's strongest-performing ancillary businesses.
"Pharmacy led the way and saw significant market share gains in the quarter," Millerchip said.
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He added that several factors are driving that momentum.
"These include increased GLP-1 demand, and inclusion of Wegovy and Ozempic in our Member Prescription Program, great value on pet medications, acceptance of Medicare D over-the-counter flex cards, and expansion of our mail order and specialty pharmacy offerings," Millerchip said.
Each of those initiatives addresses a growing consumer need.
Demand for GLP-1 medications continues to climb, with the percentage of U.S. adults who currently take GLP-1 medications for weight loss rising from 3% in 2024 to 11% in 2026, according to Gallup.
Mail order pharmacy services have also become increasingly popular among consumers looking for convenience and automatic refills.
A 2025 JD Power survey found that customers were more satisfied with mail order pharmacy services than in-store service, Pharmacy Times reported.
For pet owners, meanwhile, Costco's pharmacy is often another overlooked benefit. Many common pet medications are available at prices that often compare favorably with veterinary offices, creating another opportunity for members to save.
Costco's push for expanded pharmacy services is a smart play because prescription medications generate recurring visits.
Customers filling monthly prescriptions are more likely to stop by the warehouse regularly, where many inevitably purchase additional items during the same trip.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
