What is keeping Costco out of Columbus? Here’s why the GA city is ignored, data shows
If you’ve been waiting (and waiting) for Costco to open in Columbus, you shouldn’t hold your breath. Despite the buzz, Columbus isn’t in the running for a new Costco warehouse and it doesn’t seem like it will happen anytime soon.
Based on company criteria and national retail trends, the reasons are much more technical than, “they’re just ignoring us.” Costco itself has released specific criteria, but retail brands generally have guidelines that dictate new locations for retail stores.
What are the general criteria for retail store locations?
The geospatial technology firm Korem helps companies make informed decisions through data-driven mapping and analytics.
Because there are so many variables to consider, the location decision is complicated and multi-faceted.
Here are the major criteria:
Demographics: age, income level, household composition, education and lifestyle preferences.
Population density: higher densities are more likely to attract potential customers.
Spending habits and purchasing power: these are often determined by median income and local spending data.
Traffic and accessibility: high vehicle and foot traffic and convenient parking are preferred.
Proximity to competitors and complementary businesses: retailers look for market gaps and unmet demands.
Site visibility: sites should be prominent and easy to find.
Local activity and trends: presences of nearby amenities influence site selection.
Economic indicators: the health of the local economy, job growth rate, and median income are considered.
What does Costco look for in a location?
Costco outlines what it takes for a city to get a new location in its demo guidelines, and the store doesn’t just pop up anywhere. Costco wants dense, high-income areas with room to sprawl and plenty of suburban shoppers.
The company is very selective about where it plans new stores:
A population of 200,000+ within a 5-mile radius (Columbus’ is 200,700)
Median household income over $75,000 (Columbus’ is $55, 622)
14–16 acres of land for the warehouse and parking
Easy access to major highways and high-traffic visibility
Close proximity to affluent, fast-growing suburbs
Why Columbus doesn’t make the cut
The company is currently focused on booming metros where both population and income growth are accelerating and Columbus misses the mark on a few fronts.
Here’s where it falls short, according to Georgia Demographics:
Population: 200,770
Median household income:$56,622
Market overlap: Locations in Atlanta and Montgomery already serve much of the region.
Growth trends:
What would have to change?
For Columbus to get on the radar, we’d likely need to see:
A spike in urban and suburban population growth
Rising household income levels
More demand from retail developers and regional shoppers
Until then, the closest options are still in Atlanta or Montgomery so access isn’t completely out of reach and for now, you’ll have to keep driving for your bulk snacks and $1.50 hot dog fix.
What stores or retailers would you like to see come to Columbus?
