Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Patrick Callans, 425/313-6563
Costco Wholesale Corporation Announces Plans to Close Costco Home Stores
| Source: Costco
ISSAQUAH, WA--(Marketwire - April 2, 2009) - Costco Wholesale Corporation (NASDAQ : COST )
today announced plans to close on July 3 its two Costco Home stores,
located in Kirkland, Washington, and Tempe, Arizona.
Jim Sinegal, Costco's CEO, stated: "Costco Home has been a valuable
experiment for us. We provided a competitive home furnishings alternative
to our members in two locations and learned a great deal about home
furnishings in the process. 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. As the current lease obligations near an end, it
makes sense for us to make this difficult decision now. This decision
affects only the two Costco Home locations. Costco is planning no other
closures (except for relocation of warehouse facilities), and will continue
to offer home furnishings at all other warehouse locations. The closure of
the two Costco Home locations will have no significant impact on the
operations or financial results of the Company."
Employees at the Costco Home locations will be offered the opportunity to
transfer to other local Costco warehouses. Costco Home employees at the
Issaquah home offices will also be offered other opportunities within the
Company. We expect no layoffs as a result of these closings.
Costco currently operates 554 warehouses, including 407 in the United
States and Puerto Rico, 76 in Canada, 21 in the United Kingdom, six in
Korea, five in Taiwan, eight in Japan and 31 in Mexico. The Company also
operates Costco Online, an electronic commerce web site, at www.costco.com
and at www.costco.ca in Canada.