Both Costco Home stores to close
April 2, 2009-- Furniture Today,
ISSAQUAH, Wash. — Costco Wholesale said it will close its two Costco Home stores in Kirkland, Wash., and Tempe, Ariz., July 3, citing the weak economic climate and saying the home furnishings format doesn't fit with its expansion plans.
"Costco Home has been a valuable experiment for us," said CEO Jim Sinegal. "We provided a competitive home furnishings alternative to our members in two locations and learned a great deal about home furnishings in the process.
"The current economic slowdown and resulting weakness in the home furnishings business in particular have led us to conclude that the single-format Costco Home concept does not fit into our long-term expansion plans."
The two Costco Home stores were ranked No. 65 on Furniture/Today's Top 100 with estimated furniture, bedding and accessories sales in 2007 of $111 million.
Sinegal said no other closings are planned except for relocations. Costco continues to sell home furnishings at all of its other stores.
Costco operates 554 warehouse stores, including 407 in the United States and Puerto Rico, 76 in Canada, 21 in the United Kingdom, six in Korea, five in Taiwan, eight in Japan and 31 in Mexico. The company also sells online.