Sadly, Costco is being affected by the current economic situation too. They’ve decided to close their two Costco Home stores in Kirkland, Washington and Tempe, Arizona, on July 3rd. Here’s a quote from Jim Sinegal, in an article on the Wall Street Journal website:
“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,” said Costco Chief Executive Jim Sinegal in a statement. “Costco Home has been a valuable experiment for us.”
If you’re not familiar with these stores (you can read my previous post about them), they were separate locations where Costco sold only home furnishings and decorating items. People seemed to really like them, well, those that could get to them. But for the rest of us, it did help out in our regular Costco locations too. The furniture buyers could try things out in the Costco Home locations, plus they were more aware of trends and could get better quality merchandise to sell at their other Costco locations. I’m positive that Costco will continue to offer great furniture and decor values in their warehouses, as well as through Costco.com though.