Back in the 1980s, I walked into a vast new warehouse in San Diego, a huge place filled with stacks of goods so high you could barely see the top row. Our kids introduced us to this place, then called Price Club. It was so California, an adventure every time you visited, made more so because it operated out of an old airplane hangar. Price Club was just that: It was a club, one you had to join as a member in order to enter its doors.
Merchandise was piled high on wooden pallets and steel shelves. Forklifts were sometimes needed to help you get merchandise down and around and about. It was definitely a no-frills place, where you also could find clothing for kids and adults and scores of other family items. This was a place for high-quality goods purchased cheaply. Back then, buying in bulk was the name of the game and to some degree it still is.
In 1993, Costco and Price Club agreed to merge operations; eventually the Costco name prevailed. As of February 2013, Costco had 71.2 million members. In 2014 it operated a total of 671 warehouses around the world and was deemed the second largest retailer in the United States and the third largest in the world. It is also the largest wholesale membership warehouse club chain in the United States.
Now that club seeks to fulfill a deferred dream of opening its doors to the Shoreline in a warehouse off Exit 56 in Branford. The plan has sparked passionate feelings on both sides; the public will begin formally weighing in on the project in three weeks.
They will be weighing in on not just a plan for a store, but on a modern form of commerce that has taken hold in much of the country.
These days Costco isn’t as ugly as it was back then. As a card-carrying Costco member for decades, I have seen the store change and expand in a variety of ways. For one thing, merchandise is easier to see at eye level. For another, Costco now attracts families who may want to buy in bulk (there are still those 36-roll packs of toilet paper), but they may also want a pair of eyeglasses or a bouquet of flowers or three pairs of underwear or socks. These days Costco offers a food court for the kids, if the kids tag along. (Click here to read about a New York City experience. )
It now offers members the ability to purchase high-end goods beyond its doors by arranging with third party vendors to enter its very profitable world. It gives a member the ability to buy a new or used car from an outside vendor. It enables a member to arrange for a mortgage, or get a car or boat loan or take a vacation attractive to the wallet to Hawaii. Its third-party participants will also organize a Costco wedding and honeymoon anywhere in the world.
Now you can buy even a casket at Costco – as long as you place your order for expedited shipping by 11 a.m. EST.
Costco has long wanted a perch in Branford, a major shoreline destination that will attract patrons from Guilford, Madison and beyond, customers who want to avoid the Q Bridge en route to its Milford store. Costco has tried in the past to build a warehouse in Branford. It failed. It also failed in Guilford in 2010. (Click here to read about the Guilford effort.)
It is now in the game again as it seeks to erect a warehouse as part of a master plan on 44 acres of land near Exit 56. The Branford Planning & Zoning Commission (P&Z) will hold a public hearing on Costco’s effort to come to Branford on April 2 at the Branford High school at 7 p.m.
Costco has submitted conceptual plans to erect a 158,070 square-foot store and would include 635 parking spaces off Exit 56. In addition, another 86,000 square feet for seven other buildings are identified in the Master Plan.
The developers are currently seeking approval of a Planned Development District, which would change the zoning. If that is approved, then detailed site plans must be submitted for scrutiny by the regulatory boards. Additional public hearings would be held. If Costco succeeds in getting P&Z and Inland Wetlands approvals, the developers will be able to construct the warehouse in a short period of time.
Typically Costco downplays its impact on local retailers, saying retailers often buy from them. Ever see the Kirkland brand on a shelf at your local grocer? That “Kirkland Signature” is Costco’s “house brand.” Often local stores, food stores or hardware stores sell the Kirkland product. The name is derived from the original location of Costco’s corporate headquarters in Kirkland, Washington.
There is little doubt that thinking local, as the president of the Shoreline Chamber of Commerce Ed Lazarus likes to say in supporting local shoreline stores, may require a whole new definition if Costco comes to town.
Local retailers that typically might feel the impact of a new Costco store are liquor stores, pharmacies, grocery stores and any number of smaller neighborhood stores. In addition, the Master Plans for the Branford location call for seven other buildings that would house retailers and restaurants.
Costco’s “Departments”
Overall, Costco advertises 17 departments, all mini-stores in their own right. There are departments for Appliances, Autos & Tires, Baby, Kids & Toys, Clothing & Handbags, Computers & Printers, Electronics, Furniture, Grocery and Floral, Hardware, Health & Beauty, Gift Baskets and Gift Cards, Home & Décor, Jewelry & Watches, Office Products, Patio and Outdoor, Sports & Fitness and Travel & Luggage.
To understand what Costco sells – and it does sell cheaply – you first need to become a member, at a cost of about $55 a year. Membership gives you access. Without a membership card, you cannot enter the store or use the store’s third party services. You may bring a guest. You may also buy online, at Costco’s website.
What Costco Sells Today
In the old days Costco sold much of its merchandise in bulk. Now it sells products in bulk, but with less of an emphasis on bulk. There is fresh produce, including fresh fruit, organic chickens, organic dairy foods, kosher food, seafood, fresh baked goods, clothing, books, computer software, vacuums, home appliances, home electronics, solar panels, jewelry, tires, art, hot tubs and furniture.
Many Costco warehouses sell tires and other automobile related goods. They have state-of-the art pharmacies that will deliver your prescription pills to your door. Costco provides hearing aid centers, optometrists, photo processors, and fine wine and liquor stores adjoining the store, but not necessarily within the main store.
One of its sacred rules is that Costco goes nowhere without the expectation of a liquor store. (For that it needs a Connecticut liquor license.)
Gas stations are also essential to business. The Branford plans call for eight gas pump stations with 16 hoses. The plans say Costco will not service large trucks, which will help the truck-stop operation off Exit 56 at I‑95.
Since I am a member, I receive a monthly Costco newsletter displaying the bargains of the month. The newsletter also outlines Costco’s third-party business operation, one that extends way beyond its doors.
For example, if you are a current member you may seek a mortgage and refinancing, you may seek smart cards and business phones services through Intermedia and you may qualify to purchase and re-finance your boat and RV loans, all via third parties Costco has aligned with.
Services from these companies are provided not by Costco but by the third party identified “on each offer,” Costco states.
Autos A Big Draw
Automobile buying via a third party is a strong product for Costco.
Costco tells its members of low, prearranged pricing at more than 3,000 participating dealerships nationwide. That means the Costco member may save on a new or pre-owned selected vehicle, boat, motorcycle or power sports product. With a click, a member may find out which automobile dealers in a geographic area participate in Costco’s auto plan.
Costco and its affiliates do not directly sell an automobile or negotiate individual transactions. It explains its role this way:
“A participation fee has been paid by the dealers participating in the Costco Auto Program. All new cars arranged for sale are subject to availability and a price prearranged with the participating franchised new car dealer. Certain vehicles may be excluded from the program. Actual savings may vary based on vehicle purchased, dealer and location.”
So what does Costco sell? Just about everything except live animals. But warehouse buying hardly ignores pets. Costco sells crates, beds, food, and vitamins for animals of all kinds. You can buy in bulk, of course. Or these days, by the bag.
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