Costco Pulling Plug on Costco Home
April 6, 2009,
Membership warehouse club operator Costco Wholesale Corp. will permanently shut down its two Costco Home stores. The two test sites — located in Kirkland, Wash., and Tempe, Ariz. — are scheduled to be closed on July 3.
"Costco Home has been a valuable experiment for us," said Jim Sinegal, ceo. "We provided a competitive home furnishings alternative to our members in two locations and learned a great deal about home furnishings in the process."
But because of the economy's downturn and its negative effects on the home furnishings industry "in particular," he continued, "have led us to conclude that the single-format Costco Home concept does not fit into our long-term expansion plans."
As the current lease obligations for these sites near their end, "it made sense," Sinegal added, "for us to make this difficult decision now."
Home furnishings products will continue to be sold at the warehouse club chain's other 407 U.S. locations.
Aside from its warehouse clubs nationwide, Costco also operates 76 stores in Canada, 21 in the United Kingdom, six in Korea, five in Taiwan, eight in Japan and 31 in Mexico. The company also operates two ecommerce web sites — www.costco.com in the United States and www.costco.ca in Canada.
Related Content By Author
1200 Suppliers are Ready for You at Intertextile Shanghai
Home & Textiles Today eDaily
Most Viewed Articles
See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.