You see the headlines popping up on social media every few months. They’re usually designed to make your heart skip a beat if you’re one of the millions who swear by those $1.50 hot dogs and Kirkland Signature sheets. People start whispering about Costco closing stores and suddenly there's a minor panic in local Facebook groups. But here is the thing: Costco almost never just "closes."
Retail is brutal right now. We’ve watched Macy’s shrink, Bed Bath & Beyond vanish, and Walgreens announce plans to shutter hundreds of locations. Naturally, when a Costco warehouse announces it is locking its doors, people assume the worst. They think the membership model is failing or that e-commerce has finally won.
That isn't what's happening.
If you look at the actual data from Costco’s fiscal reports and their real estate moves, the narrative changes. When a Costco location "closes," it’s almost always part of a "relocation" strategy. They aren't retreating; they're upscaling. They trade an old, cramped 130,000-square-foot building for a massive 160,000-square-foot beast down the road with more gas pumps and a better tire center. It’s growth disguised as a closure.
The Reality Behind the Costco Closing Stores Headlines
The confusion usually starts with a local news snippet. Take the relocation in West Des Moines, Iowa, or the shift in Salt Lake City. Residents see a "Store Closing" sign and the internet does what it does best—it panics.
Costco’s business model is weirdly resilient. Unlike Target or Walmart, which have thousands of locations, Costco is extremely selective. They only have about 870 warehouses worldwide. Because they own most of their land and buildings, they don't just walk away from a profitable site. When they do decide to move, it's usually because the current parking lot is a nightmare or the local infrastructure can't handle the 3,000 cars trying to get to the rotisserie chickens on a Saturday morning.
Real estate experts like those at Cushman & Wakefield often point out that Costco is the ultimate "anchor tenant." They don't leave markets; they dominate them. If a store is actually closing without a replacement nearby, it is a generational rarity.
Why Relocations Happen Instead of Outright Closures
It’s about the logistics of the "Treasure Hunt."
Costco needs space. A lot of it. Many of their older warehouses built in the 1990s simply weren't designed for the sheer volume of business they do today. Think about the pharmacy, the optical center, the hearing aid kiosk, and the ever-expanding refrigerated section. You can't fit a modern Costco experience into a thirty-year-old footprint.
- Parking capacity is usually the first "breaking point" for an old location.
- Gas stations are massive profit drivers, and older sites often lack the space to install 24-pump arrays.
- Logistics and delivery hubs for Costco.com require back-of-house space that old buildings don't have.
Honestly, it’s a luxury problem. Most retailers close stores because nobody is shopping there. Costco "closes" stores because too many people are shopping there. They are literally bursting at the seams.
Identifying the Fake News and Clickbait
You’ve probably seen those "Closing Down Sale" ads on Instagram or TikTok. Total scams. Costco doesn't do "going out of business" sales. Their inventory management is so tight that if a store were actually shutting down for good, they’d just truck the pallets to the next nearest warehouse.
If you see a website claiming a massive list of Costco closing stores, check the official Costco "New Locations" page first. You will almost always find that for every one store "closing," there are two or three new ones opening. In 2024 and 2025, the company maintained a steady clip of roughly 25 to 30 new openings per year. That is not the behavior of a dying chain.
The Specific Cases Where Stores Actually Disappeared
There are outliers. It’s rare, but it happens. Sometimes a lease negotiation goes south, or a specific demographic shift makes a location untenable.
But look at the Northport, Alabama situation or the recent moves in the Pacific Northwest. These weren't retreats. They were tactical shifts to better real estate. If you’re a shareholder or just someone who likes buying mayonnaise by the gallon, the "closures" are actually a sign of financial health. It shows the company is willing to eat the short-term cost of a move to ensure long-term efficiency.
How to Track Your Local Warehouse
If you're genuinely worried your local spot is on the chopping block, stop looking at "lifestyle" blogs and start looking at local planning commission records. Those are public. Before a Costco moves, there are years of permit filings, traffic studies, and environmental impact reports.
You can also check the "Warehouse Locator" on their site. It’s boring, but it’s accurate. They list upcoming openings months in advance. If your store is moving, the employees—who are generally some of the longest-tenured in retail—will usually be the first to tell you. They aren't losing their jobs; they’re just getting a newer breakroom and a shorter commute.
The Impact on the Community
When a warehouse relocates, it does leave a "big box" hole in the neighborhood. These 140,000-square-foot ghosts can be hard to fill. Sometimes they become massive indoor pickleball courts, or they get subdivided into smaller retail spaces. This is the only real "downside" to the Costco relocation strategy. The old neighborhood loses its anchor, and the new neighborhood gets a boost in property values and traffic.
Actionable Steps for the Savvy Shopper
Stop stressing about the rumors. Instead, use the relocation cycles to your advantage.
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- Verify the Move: If you hear a rumor, check the Costco corporate "New Locations" list. If it isn't there, it’s probably gossip.
- Watch the Gas: If a relocation is happening, the old gas station usually shuts down a few days before the new one opens. Plan your fill-ups accordingly.
- Executive Membership Perks: Remember that your membership is valid at any Costco in the world. Even if your local store moves ten miles away, your rewards still accumulate.
- Keep Your Receipts: If you bought a big-ticket item at a store that's moving, don't worry about returns. Any Costco location can process a return from any other location.
The bottom line is simple. Costco isn't going anywhere. They are just moving to a bigger house because they've outgrown the old one. If you see a "closing" sign, look for the "opening soon" sign just a few miles down the road. That’s where the real story is.
Keep your membership card handy. The rotisserie chickens are safe.