Anne Howe

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...]

I like the idea of Costco taking empty spaces in specific malls. It works for shoppers, making the club more accessible on a day-to-day basis. However, there are some obstacles they might consider solving, the most important being a more convenient check-out lane for those who may be eager to stop in more often for a quick pick up of meal items. The idea of stopping in for nice fillet or fresh crab legs and a well-priced bottle of wine is appealing, but not if there are scores of people with cartloads of stuff in every line.

The other downside is parking, and seeing a nice mall lot with all those carts hanging around. It's never attractive and could hurt business for those retailers that are located close by within the mall.