*Costco has quietly pulled the plug on Costco Next, ending a members-only shopping perk that offered discounts of up to 40% on select merchandise.
Costco Next, launched in 2017, operated as a curated online marketplace connecting Costco members with hand-selected suppliers. It expanded the selection beyond products normally available inside Costco warehouses or on Costco.com, with participating vendors handling fulfillment. But in early September, Costco abruptly closed the service, according to TheStreet.
“Access to Costco Next store fronts is no longer available,” Costco’s customer-service page now states. Members with eligible returns or warranty claims are being directed to contact individual vendors.
Costco has not publicly explained why it ended the program.
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The shutdown is particularly surprising because Costco executives had recently painted a very different picture of Costco Next. During the company’s third-quarter 2024 earnings call, CFO Gary Millerchip said the marketplace was growing “nicely.” Costco had added eight vendors that quarter, bringing its total to 75.
Millerchip called Costco Next a “tremendous upside opportunity” and emphasized that its carefully selected merchandise distinguished it from massive third-party marketplaces. The positive talk continued a year later.
During Costco’s third-quarter fiscal 2025 earnings call, Millerchip said Costco Next was showing “healthy year-over-year growth.” Sales during that quarter alone equaled the program’s sales for the entire 2022 fiscal year, he said.
Costco was also “excited about the pipeline of new vendors and development for future rollout.”
Now, the marketplace is gone.
Costco Next offered products including home goods, luggage and electronics, with some discounts reaching 40%.
The shutdown comes as Costco continues adjusting the benefits and experiences attached to membership. As EURweb previously reported, the retailer introduced exclusive early shopping hours for Executive Members, giving its highest-paying members additional warehouse access.
For now, Costco members have lost a potentially significant source of discounts, while the biggest question remains unanswered: Why shut down a perk the company said was doing so well?
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