Multiple outlets are reporting plans for future Costco closures. We will attempt to separate fact from speculation.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: FOX19.com, Forbes.com, and Finance.Yahoo.com.
I write extensively about the Costco warehouse superchain on NewsBreak. My August 28th article, “A New Permanent Costco Closing Continues Sweeping Company Changes,” is particularly relevant to this present piece.
The article included a pertinent July, 2022 excerpt from FOX19.com, “Costco Store Closing in Springdale, City Official Confirms,” that elaborated upon news of the company’s most recent closing, an Ohio location that recently shut its doors.
As excerpted from the article: The Costco store in Springdale will close this fall as a new location opens in Butler County, a city official confirms to FOX19 NOW. Andy Kuchta, Springdale’s economic development director, said big box retailer’s real estate company officially notified him earlier this month, on July 7. “We had an initial meeting with them in April to review different options of converting our store into a Costco business center location. Since that meeting in April, we haven’t heard anything from them. Their real estate agent called me and said the operations team at Costco spent the past 2.5 months reviewing options for that conversion and determined it could not cost-effectively be done due to the size of our store and the smaller business center.”
The location was said to be closing, though, in part to make way for a new larger and improved nearby Costco — which has since opened. See my NewsBreak article about that matter here.
Both moves, it should be noted, took place this month.
And this, to be succinct, represents in large part the story of Costco closures. Company stores close for primarily strategic reasons.
Let us explore further, and focus on what appears to be legitimately planned in this regard, if anything, as we head into the new year.
Rumors aside, at the beginning of 2022 Costco’s outlook was considered strong, according to Sanford Stein of Forbes.com’s “Costco Will Spend $4 Billion in 2022.” As excerpted from Stein’s article: Costco’s Senior VP of finance and investor relations, Bob Nelson noted that “Costco—which is cash-rich and carries minimal debt—opened 20 net new stores globally in 2021, and this year expects to add as many as 28.”
The company largely met its goal, but also closed a location along the way permanently.
According to Finance.Yahoo.com‘s November 2nd report, “Costco Wholesale Corporation Reports October Sales Results,” it seems business is actually stronger than ever: Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $17.73 billion for the retail month of October, the four weeks ended October 30, 2022, an increase of 7.7 percent from $16.47 billion last year. For the nine weeks ended October 30, 2022, the Company reported net sales of $39.19 billion, an increase of 9.0 percent from $35.97 billion last year.
To be clear, however, though no encompassing announcement has been made regarding upcoming permanent closures, financials and short-term closing announcements are readily available online, and as of press time indicators are positive in terms company expansion, as opposed to contraction.
As is typically the case with such reportage, fact and rumor frequently merge. For now, though largely expected by industry analysts due to past strategic closing patterns, no formal word has been offered by Costco regarding future permanent closings.
Online pieces suggesting 2023 closures appear to be, until then, speculative in nature. Walmart, as a comparison, is very much similar in terms of reportage regarding its own permanent closures.
In the event of pertinent updates to this matter, I will share them here on NewsBreak.
Thank you for reading.