Costco Expansion Stalls in Three States Due to Population Size, But Membership Continues to Grow

Costco’s expansion across the United States has been significant with over 600 warehouses, but three states still do not have a location of the membership-only chain – Rhode Island, West Virginia and Wyoming. Until recently, Maine was also on this list, however, a store opened near Portland in November, providing residents access to Costco’s famous $4.99 rotisserie chicken or $1.50 hot dog. Although there have been reports that several communities are courting the wholesale chain as of February for Rhode Island locations, nothing has been confirmed yet. One factor why these three states lack a store is their population size according to Food Republic’s analysis. Employment, median household income and projected population growth near potential warehouse sites also play a role in Costco’s decision-making process when opening new stores. Despite this, the company reported an increase of 7.3% in its total membership during Q2 last year, bringing it to 132 million cardholders as of August. This was reflected by the $58.44 billion revenue generated from Costco’s second-quarter sales – below analyst estimates but still a significant figure. The first Price Club location opened in San Diego in 1976 and Seattle saw its inaugural Costco store open in 1983.