Is Costco coming to town? Retailer tops wish lists in Corpus Christi

Michael Reesby is a Costco fan — he loves the prices, selection and checkout efficiency of the bulk discount retailer.

Reesby also loves the wide span of goods sold there, from apparel to groceries, and the sizes — being able to purchase larger-than-average packages of provisions and loading them into big baskets.

He lives in Baton Rouge, he said, but he frequently travels to Corpus Christi and is planning to move to the city permanently in the upcoming months.

While he knows there’s no confirmed project, when Reesby saw a post on social media suggesting the possibility of a Costco store being developed in Corpus Christi, he was pleased.

“I thought, man — it’s about time,” Reesby said.

He’s not alone in that sentiment.

The rumors of a membership warehouse are perennial — and have spanned more than a decade.

A Costco, it is said, is planning to raise a warehouse in Corpus Christi.

Plans have never been confirmed by city officials or the company either in the past or at present.

Costco representatives in an email wrote that it was company policy “to not comment regarding future Costco warehouses or construction until we are ready to share details about the new location,” directing the Caller-Times to its website where anticipated store openings are listed.

Corpus Christi is not on the list.

However, in a statement sent by the city of Corpus Christi, officials wrote that “economic development staff has been in contact with Costco site locators over the past couple of years.”

“Currently, Costco has not identified a site that meets their requirements, but staff continues to maintain contact with them and provide options,” the message stated.

Corpus Christi residents have consistently called for a Costco in the city, and no place likely more frequently than on social media.

So what is it about Costco?

How a store means success

Although some have lobbied for pursuit of a Trader Joe’s store, pose the question about Costco on social media and residents’ responses cite pricing, customer service, selection, a forgiving return policy and additional competition for existing chain grocery stores in Corpus Christi.

In some cases, fans describe driving to other Texas cities to shop at a Costco.

Developing a warehouse in Corpus Christi is regularly brought up in conversations with the community, several City Council members have said — and in some cases, its invocation represents more than just merchandise.

“The store’s brand is being correlated with big, successful cities,” said Mayor Paulette Guajardo.

For City Councilman Mark Scott, it was a conversation about Panera Bread that impressed upon him the significance retailers can play in community perception, he said.

The popular cafe has more than 70 locations in Texas, its corporate site shows, but not in Corpus Christi.

“(An executive’s) wife one day said, ‘Mark, we won’t be a real city until we get a Panera Bread,’” Scott said.

“And I’ve always thought about that — like, really? It’s a Panera Bread. But man, that was a big deal to her. The point is, there are certain retail opportunities that people perceive thriving cities to have.”

Costco is among those retailers, he said.

The 'white whale'

There had been talks with Costco about development of a warehouse on a property at South Padre Island Drive and Rodd Field Road, the Caller-Times reported in a 2014 article.

Although neither the city nor Costco confirmed the negotiations, landowner Margo Lyn Moore and developer George Clower are quoted, relaying that Costco had been interested in the property.

City incentives could not be agreed upon, according to the article.

Debbie Lindsey-Opel, acting as a representative for Moore’s property, told the Caller-Times last week that there has been some interest “on a smaller type of project” on the property.

But the owners would be “very interested if Costco would want to come back into this market,” she said.

“At this point there’s no confirmation about any type of formal discussions other than it would be an absolute opportunity for the community to have Costco come back to the table,” she said.

How companies decide

It’s not unusual for companies to avoid publicizing deliberations of expansion until a decision is made. In the case of economic development negotiations, it’s common that both the company and the local government entity maintain confidentiality on those details as a matter of safeguarding competitiveness on both sides.

None of the City Council members contacted by the Caller-Times in February said they were personally aware of economic development talks with Costco.

Generally, companies evaluate a slew of factors when contemplating locations, said Oliver Cruz-Milan, Texas A&M University-Corpus Christi marketing professor.

That includes demographics, such a population age, gender, income, education, lifestyle, customer loyalty, household density and buyer behavior habits, he said.

It frequently also includes mobility considerations, such as infrastructure and highways, Cruz-Milan added.

In Corpus Christi, there’s “a customer base that is expecting Costco to be established,” he said, citing anecdote and social media.

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New Costco locations

In the past month, news stories carrying headlines of a coming Costco have included a location in New Braunfels.

Earlier this month, San Antonio-based MySA reported that the New Braunfels City Council had unanimously approved economic development agreements with Costco, stating that the corporation was planning construction of a 150,000-square-foot store that would employ about 150 people at $20 to $29 per hour.

It was news that “marked the latest phase for the growing community,” wrote reporter Gabriel Romero.

Texas comptroller records show at least a dozen cities in the state having brokered economic development agreements with the big-box retailer.

Whether the city would consider incentives with Costco is a question. Philosophically, the council is split on whether incentivizing retail at all would be beneficial, citing concerns that supporting the financing of one store would put another that didn’t receive tax breaks at a disadvantage.

It wouldn’t necessarily be appropriate “to say we’ll do whatever we can to get them,” Scott said.

“There is certainly an interest in the community of acquiring a Costco,” Scott said. “Most of those don’t take into account the cost of acquiring a Costco. We may all want a Costco. But we may be unwilling to pay the incentives necessary to get a Costco.”

In total, Costco plans to open 29 new stores leading up to August, growing its footprint to more than 900 locations, USA Today reported in a Dec. 20 story.

The city “is always looking for retail opportunities, regardless of the size,” Guajardo said, adding that large retailers see Corpus Christi “on the map.”

“We’re the eighth-largest city in Texas,” she said. “Are we ‘big enough’ for a Costco or a Bass Pro Shop or anything else for that matter? Yes, absolutely. The doors are always open, and we’re always working toward attracting businesses.”

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This article originally appeared on Corpus Christi Caller Times: Costco has topped retail wish lists in Corpus Christi for years. Why?