ISSAQUAH, WA, Apr 02, 2009 (MARKET WIRE via COMTEX) -- 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.
Costco Wholesale Corporation
Richard Galanti, 425/313-8203
Patrick Callans, 425/313-6563