Mel Kleiman

Costco Goes to the Mall for Growth

August 25, 2010

FROM RETAILWIRE:
In the past, Costco has opened the occasional club in a mall. Now, however, the company is making a push to put its stores in shopping center spaces that typically house department store anchors. What is your assessment of Costco's move into mall locations?      [more...]

This should not affect the Costco model. They will only go where it is good for them to go and where there is space that fits their needs at a price they are willing to pay.

Good move for Costco and most likely good news for some mall owners who get to fill some empty space. Now the question is, what is the mall owner going to do for all of the other tenants to help them tap into the increased traffic flow. What kind of promotions can they do to turn a destination shopper into a shopper? Traffic is going to be there--the question is how do you capture it?