The Associated Press
ISSAQUAH — Costco Wholesale Corp. said it will shut its two home furnishing stores in July due to the recession.
Costco, one of the nation’s largest wholesale club chains with an outlet in Sequim, has made some gains during the economic downturn as shoppers have headed to its stores mostly for deals on bulk food items and gasoline. But sales of nonfood items, such as furniture, have dropped as consumers continue to curb their discretionary spending.
The company said it decided to close its Costco Home stores in Kirkland and Tempe, Ariz. because their leases were close to ending.
“The current economic slowdown and resulting weakness in the home furnishings business in particular have led us to conclude that the single-format Costco Home concept does not fit into our long-term expansion plans,” Chief Executive Jim Sinegal said in a statement.
The company does not anticipate layoffs related to the closings and still plans to offer home furnishings at its remaining wholesale clubs.
The closings are also not expected to hurt Costco’s financial results.
Costco currently runs 554 warehouses, including 407 in the U.S. and Puerto Rico, 76 in Canada, 21 in the United Kingdom, six in Korea, five in Taiwan, eight in Japan and 31 in Mexico.
