Steve Montgomery

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 agree that there is a danger that the Costco shopper will complete their purchases and head home. However, that does not mean they will have avoided going into shop at other stores in the mall. It will depend on their primary reason for going to the mall. I can easily envision occasions where the trip driver was a mall purchase and, oh yeah, let's see what's going on at Costco.

Agree that this can be a viable part of Costco's overall market penetration strategy, but don't foresee them ever giving up their reliance on free-standing locations. Costco is building a new store about three miles up our street and I look forward to dropping in and seeing what they have on a more frequent basis.