"Vachris said on the call that Costco plans to open 35 locations this fiscal year, compared with 27 in the past year. Prior years have typically fluctuated between 25 and 30 openings, which would make this year a comparatively busy one. The first four locations of this phase include Fruitport, Michigan; Mechanicsburg, Pennsylvania; Indian Land, South Carolina; and a business center in Mississauga, Ontario. All four are slated to open in October."
"Costco executives have previously described how the company is placing new warehouses near successful ones to strategically cannibalize sales and relieve traffic pressure on popular locations. "In the US, where we open and we're filling in markets, we see tremendously quick growth in sales," Millerchip said. "Not only in the new warehouses, but we replace the sales in the affected warehouses because we're freeing up the capacity for those members to shop more frequently.""
Costco plans to open 35 locations this fiscal year, compared with 27 last year. The first four openings include Fruitport, Michigan; Mechanicsburg, Pennsylvania; Indian Land, South Carolina; and a business center in Mississauga, Ontario, all slated for October. New warehouses are being placed near successful clubs to relieve traffic at popular locations and increase overall sales growth across markets. The year's openings are expected to include five relocations of existing clubs, creating opportunities to refresh older warehouses and to open business centers within those refreshed sites. Average U.S. warehouses in mature markets are around 20 years old.
Read at Business Insider
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