We saw plans in 2018 for a Costco by Assiniboia Downs and were told by their chief executive in a visit that a fourth store was coming but then the pandemic came in 2020 and all plans were off the table. It is now 2023 and similar plans are back for the same site. Same size Costco at 166,000+ feet and more parking than the original plan had. Keep in mind that Kenaston's Costco has had to parking expansions since it was built in 2007 and still barely has space each and every day. Regent also added parking as it too reached capacity. St. James doesn't have that option as the smallest location and doesn't even have a gas station.
The new location appears to be larger than Kenaston and Regent. Those were built to a standard 150,000+ square feet. Same size as what is in Fargo, North Dakota. I found no records they ever expanded beyond original building. The first two Costcos at St. James/Polo Park and Regent were built in 1990 and 1992. The third at Kenaston came, as mentioned, in 1992. The first Walmarts in Canada came in 1994 when Woolco was taken over by the big U.S. chain. It would take another six years or so for Walmarts to move to better locations. The original Costco in Burnaby, B.C. came in 1985 and this head start over other U.S. retailer gave it a strong advantage. The largest Costco in Canada is the recently completely one in St. John's at 182,000 square feet. That's pretty big but there largest in the States is 230,000 square feet.
Early arrivals and adapting have helped the Costcos and the Walmarts survive in Canada while the Targets and Nordstrom's have failed. If Costco is adding a fourth store, it is certainly because the demand warrants it. The Facebook and Reddit discussions mention the issues with crowds in Winnipeg and no doubt there is joy in the city that a new location is coming.
The one thing a Costco does in an area is create some competition. In terms of gas sales, Costco has an effect on pricing downwards for a few blocks surrounding it. Likewise, car maintenance places have to keep an eye on the warehouse store lest they lose business to it. A fourth Costco is good for consumers. Costco pharmacies have impacts on dispensing fees, optical purchases, meat, bakery and produce and third party business purchases.
Interviews with some business leaders like Foodfare in Winnipeg have shown they don't fear Costco. They have carved out a business operation that has worked well although everyone has been re-thinking supply chain issues, reliability and inflation. As the pandemic showed, overseas supply chain worked insofar as cheaper products only when fuel costs were low, world trade stability in check and interest rates down. Inflation means cost controls will come from supplies closer to home, sharing more costs of warehousing and shipping, more automation in logistics and if Costco's example is any indication, an army of people on the floor to assist in the human to human element of running a shop.
The development that Costco is in is called Westport Festival. There will be two traffic lights leading into it. The Red River Ex and Assiniboia Downs are located north of. The Iceplex is east of it as well as the car dealerships. It has been a busy area at times and it could get busier. It could very well be that this leads to more lanes on that section of road. The stretch to Headingley has been notorious for years for speeding and collisions.
It is difficult to say if Costco will make it easier along the section by the Kenaston location. The development of the Kapyong area into 2024 and the growth of Bridgwater and communities beyond make it seem like no relief is coming soon to the area. However, for many in the west part of the city, they can choose to use the new Costco.
No timeline exists for the opening but 2024 seems reasonable. A big question is whether Portage West Walmart will upgrade to compete. It doesn't have the grocery of other Walmarts and might lose business without doing something. We might see a few businesses along the street look to improve because it is not only Costco going up in that retail area.
For Winnipeggers, is the chance of more competition for these high inflation times.
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