Costco CEO Ron Vachris emphasized addressing parking shortages as crucial for operational efficiency. High customer traffic at existing locations often signifies a necessity for new warehouses nearby, a strategy termed "cannibalizing". This approach not only reduces congestion but also boosts sales; for instance, a recent Pleasanton opening achieved record sales. To tackle parking issues, Costco considers buying adjacent land or building multi-level parking. Vachris noted that less time spent on parking promotes customer loyalty, ultimately leading to increased expenditure at warehouses.
Full parking lots generally mean busy warehouses, and that's where a more recent trend has been emerging for the company: just add a whole new warehouse nearby.
These so-called in-fill locations are an increasingly important piece of Costco's growth strategy, execs have said on earnings calls.
When customers spend less time trying to find a parking spot (and less time waiting in lines in the warehouse), they're much more likely to come back more often and spend more money.
Vachris said that some options include buying nearby land to add space or building upper-level parking on top of some locations.
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