How Costco Decides Where To Open A New Store

[My 2 cents]

My 2 cents -
At the link on the original post the CFO explains its company policy to open another store in an area where the existing store reaches $300-$350,000 a year in sales.  When I contacted Costco I asked whether the Kailua-Kona store had that in sales, but they replied individual store sales numbers are confidential.  

So they might-could-maybe open a Hilo location if Kailua-Kona has good numbers, even if they lose business on the west side.  It’s part of their corporate strategy.

I doubt that their strategy is to go in blindly based on a number.  I’m quite certain that they evaluate other criteria.

For example, in most places where they would open a new store 100 miles to the east of an existing one because of the population there, there is probably another population 100 miles further that would continue the growth.  We are on an island.  That condition doesn’t exist.

Anyway, I’m not trying to put the kibosh on anything.  Just trying to understand why they might be dragging their feet on this.  It has to make financial sense for them or they won't do it.