Costco’s Home Store Test – Unit Two

Discussion
Nov 04, 2004
George Anderson

By George Anderson


Costco opened its second Costco Home store in Tempe, Ariz. last Friday and customers were lined up outside waiting for the doors to open.


Costco Home is the warehouse club’s upscale home furnishings store selling bedding, carpeting, furniture, lighting, wall décor and window fashions.


The opening of the south Tempe location is quite a while in coming. The warehouse club chain opened its first Costco Home unit in its Kirkland, Wash. hometown back in December 2002.


IKEA plans to open one of its discount furniture megastores in Tempe on Nov. 10, according to The Arizona Republic.


Moderator’s Comment: What will be the keys to success for Costco Home? Does the space of time between the chain opening
its first and second test unit suggest problems with the concept?


Travis Tuttle, 26, of Queen Creek, Ariz. explained the attraction of Costco Home to The Arizona Republic. “We’re deal shoppers – we look for smokin’
good deals,” he said.


According to the report, Mr. Tuttle “found a good enough deal on a couch he would take it home – without asking his wife.” Good luck!
George Anderson – Moderator

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