Costco App Redesign
Driving Clarity, Conversion, and Engagement Through Smarter Navigation
May 2026
Context
The Costco app represents an important digital extension of the company’s membership model, connecting members with product discovery, shopping, membership services, and other digital touchpoints. With Costco’s digital sales growing nearly 19% year over year, the app has an increasingly important role in driving digital engagement and revenue.
The scale of the opportunity is significant. Costco had 76.2 million paid memberships globally in FY2024, with approximately 72.4% of revenue coming from the U.S. market. Applying Costco’s household cardholder ratio results in an estimated 100 million U.S. cardholders, creating a substantial addressable audience for digital adoption. By comparison, the Costco app reached approximately 39 million downloads by the end of FY2024, suggesting considerable room to expand its digital user base.
This gap represents an opportunity to make the app a more compelling part of the Costco membership experience. Improving discoverability, navigation, and the overall user journey could help convert more existing members into active digital users while creating additional opportunities for engagement and revenue.
This case study explores how targeted improvements to the Costco app experience could unlock that growth potential.
Context
If the Costco app becomes more intuitive, makes key features easier to discover, and streamlines essential user journeys, more existing members will adopt the app as part of their regular shopping routine. Expanding the active user base would create greater opportunities to drive digital engagement and revenue, capitalizing on the nearly 19% year-over-year growth in digital sales.