Costco passes on Tri-Cities market

Local

(WJHL) — A company that handles real estate for Costco says the company is not interested in coming to the Tri-Cities.

This comes after officials mentioned the possibility of Costco coming to the area, specifically the Boones Creek development district.

But according to Dan Venable, Vice President of Northwest Atlantic, the company doesn’t find the region’s demographics appealing.

“Costco looks for a minimum of 250,000 people per warehouse club within a trade area. In a market like Tri-Cities, with 2 Sam’s Clubs, that would require a minimum population of 750,000 within a trade area. We consider a 30-minute drive to be a reasonable trading area,” Venable said.

Venable also said Costco targets wealthier households and looks for above-average household incomes as a result.

“The income levels in the region are lower when compared to other markets that we are considering,” he said. “As a result, we have passed on the market.”

Venable said the company has been contacted “many times over many years” about coming to the Tri-Cities but the “region is not an area where we wish to expand.”

SEE ALSO » Johnson City leaders approve boundaries of Boones Creek development district

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

Don't Miss

More Don't Miss