Some people who “know” are convinced that it is official, others say the city has botched the land deal. Is Costco coming to the Hat or not?
So, I called Costco. The nice lady on the phone told me the official statement from Costco is “There will not be a Costco built in Medicine Hat this year.”
Really? you mean, they cant acquire land, build a 30,000 square foot building and staff it in the next 10 months? Whats wrong with them!
Not Satisfied, I called the City planning department. They informed me that Costco has not taken a building permit out yet. She told me to contact Keith Crush. I emailed him last thursday, but have yet to receive a response.
A rumour I heard recently is that three well known local land developers have purchased land between Medicine Hat and Redcliff to entice Costco to build there. I have heard this from 2 separate sources.
Either way, the Costco rumours are well alive in this city, and it doesn’t seem like it is going to slow down in the near future.
I promise I will keep trying to find the real information, and will post if I hear anymore.
Update: Unconfirmed that it is the land by the IXL in Redcliff. The idea is that the land would be big enough to build a Costco, but also some stores around it approved by Costco (chapters, etc.).
I for one could hardly care if the corporate beast known as Costco ever rears it’s ugly head in Medicine Hat.
I am a firm believer that these types of big box super discount stores do more to harm an economy than help it.
Contrary to their statements, they don’t CREATE jobs, they TAKE THEM from existing businesses. In markets with already low unemployment rates (like the Hat), they force smaller businesses out, and then give their workers jobs at lower pay. With not a lot of use for education, there is a higher trend toward minimum wage jobs. Entrepreneurial minded folks are heavily detered by the presence in the market of a hulking discount giant. The profits from said corporations don’t filter back into the local economy…they go down to the states in the form of Executive salaries and stock-holder dividends. Customer Service suffers, and consumers learn to expect less out of their merchant.
I was vastly disappointed to hear when the City dropped it’s drawers to get a Wal-Mart, and if they have learned their lesson, good for them.
I had heard that Costco may be building on the land out between Home Depot and our church, Glenview Nazarene. I don’t know who had said that, or how much credibility there was behind it, but anyway… I could take it or leave it with Costco, as I’ve never had my own membership in Calgary etc like some people swear by.
I like my Sobey’s and love the online ordering
Hey Melissa,
That was the idea, but somehow the city botched it, or Costco was asking too much. either way, that fell through, and they are looking for another place to build, or so the rumour goes.
I think the rumour is that Costco is playing the field a little bit.
My best friend’s sister’s boyfriend’s brother’s girlfriend, heard from this guy, who knows this kid who’s going with the girl who saw Costco pass out at 31 Flavors last night. I guess it’s pretty serious.
I could really care less about Costco opening, but I would love to see a Chapters. The Coles at the mall is the worst book store; their “New Age” section consists of horoscopes and dream books, there is way more variety out there that I could spend my money on. Right now, I have to order anything different online, and I really hate waiting!!!
I feel bad for small bookstores since they simply cant compete. The best they can do is order a book in …but most of us can do that ourselves online.
I cheer for our little Coles because I want a book store in the Hat …but they are always missing book 1 of any series….arrrrg.
I do love Chapters…I hate to support big corporations but I do enjoy Chapters (who owns Coles anyhow)
The unfortunate thing is, we used to have a pretty good independent book store, and I supported it in a couple of different ways. Once the bookstore changed hands, things kind of deteriorated, and they ended up closing their doors, which really is too bad. But a lot of people have the mindset of “going to the mall”, and never think to support the little guy. If people would try a little harder to support local business, maybe we wouldn’t end up having to rely on big business, because all the little guys have closed their doors. (As an aside, I am an avid supporter of downtown, and can’t remember the last time I was at the mall)
I think your map of where they are rumoured is a little off. I heard they had tried to build by the Home Depot but the City was “uncooperative” when it came to the water, power, etc. So I have since then heard that they are looking at the chunk of land across the highway from Trukkers and across Boundary Road from Flint. Just what I have ‘heard’ on the rumour mill
I heard what Ducky heard, and I also heard something else.
From what I heard Costco wanted to build near home depot. The city wanted them up near crescent heights/redcliff in order to boost property values and whatnot in that area. Costco wanted to break ground this spring out by home depot but city council unofficially told them it’s either build up by crescent heights or don’t build at all. Costco said not at all.
If that’s true we could be waiting awhile for one. Oh well, it’s a short drive to the ‘bridge.
Everything I heard was about money, Costco is wanting a certain price and the city was unwilling(and better not) to give that price. Its very evident that Costco is still interested, why else be at the trade show.
My speculation and my mother’s brothers son’s sister agrees, the poor sales of Home Depot and the overall shortage in the employee pool has caused HD to slow down their plans.
Costco had a booth at the MH spring home show to supposedly get a feel for customer interest in town. Personally, I like to shop at Costco but don’t really mind going to Lethbridge to do so — it is a nice little outing occasionally.
On another note, Costco, unlike Walmart, apparently treats its employees very well. I know that in the Lethbridge store, I have been seeing the same faces for years. As well, a good friend of my brother’s who worked in one of the Calgary stores was badly injured in a car accident, which left him unable to work for almost a year and they held his job for him.
Well, I can attest to the policy of Costco to its workers… (I’m not a Med. Hatter btw… but I do know quite a few from playing some online games).
I am paid almost 2X as much as a Wal-Mart employee, and have almost the same benefits package as a government employee. How many small businesses can offer that to their employees? Do they eliminate business to some of their competitors? Depends on the competitor I guess…. retail is a messy place, and businesses have to reinvent themselves from time to time to keep their profits in the black… a big competitor should not neccessarily mean that all the small businesses are going to fold… they just might have to reinvent themselves. Focus on a different strategy than their competitor. If Costco starts selling mid-range stuff, well, take that opportunity to sell high-end stuff. They sell high-end stuff… you sell mid-range stuff. Keep customer satisfaction as a primary goal… Costco does this VERY well. The return policy there is LEGENDARY…. and its one of the reason that it has rabid followers. If the memeber isn’t happy with the product… for ANY reason…. return it. Does this hurt the bottom line a bit… well, maybe… but does it breed customer confidence? OH HELL YEAH!
The salestaff is not commissioned (cough… cough FUTURE SHOP), and generally doesn’t do any kind of hard sell pitch. If you feel like buying it… go ahead… you’re not going to get ‘Honest Bob’ out there pitching a product to you that you won’t need.
What market is Costco interested in? Quite honestly… the markets where people have been gouged for years and years, and are quite used to it, and think its normal now.
Jewelry stores (not all here… I’m generalizing), work on about a 200 - 500% mark-up. Its just considered normal now… a 1ct diamond ring just COSTS that much. Enter Costco with the same diamond in the same setting selling it for mabye about 12-14% markup… and well… that’s a HUGE savings! Mattresses, electronics… blah blah blah.. you name it. There are certain areas that people are just accustomed to paying too much. This is sometimes aggravated in a smaller centre… there just hasn’t been a lot of competition to the mom and pop store… but is progress for the consumer a bad thing? Do you want to keep paying 2X as much for product X or Y, when you could get it for less (at the same quality level), with a better return policy (not just 15 - 30 days, for store credit only)… Yes… Most people think that this IS worth the $50 a year.
Lets not even get started on prescription drugs, or optical stuff… thats almost the same as the jewelry stores.
People embrace Wal-Mart with a passion, and yet all they do is rape and pillage the population… and then people assume that Costco (being large and all), operates in the same manner…. well, its not true.
As a Costco employee (for 12 yrs now… 2 in Regina, 10 in Vancouver… yes… I asked for a transfer, and they said ’sure!’) I am treated well… I get bi-yearly bonuses (of around $2200 per bonus), nearly $20/hour, optical coverage (1 visit to optometrist every 2nd year, and $200 allowance for vision care every 2nd year), medical and dental (can’t remember the % coverage… but its in the 70-80% range), prescription drug coverage, 4 weeks of paid holidays ( +2 floater days), stat holidays off (mostly.. there’s a few that we’re still open on), no graveyard shift… really, the benefits are ongoing…
How can that not be good for the population of your city?
Whew… I think I’m done there for now…
Any other questions about the company… let me know. Just don’t lump them in with Wally’s World…. totally differently run companies.
J.
That’s some awesome feedback, Jaws! It’s great to hear about things “from the horses mouth” (forgive the analogy) so to speak.
I for one have always assumed Costco employs a Wal-Mart-ish corporate culture, and it’s good to hear that I’ve been wrong.
Thanks for giving us a glimpse inside Costco, Jaws!
One more thing….
(I can’t confirm this DOES happen… but I’ve seen a bit of it in the past)…
Costco loves property speculation… there’s a lot of money to be made in real estate. They’ll buy up parcels of land… sit on it for a bit, let the property value go up (based a little on the possibility of a Costco going in), and then sell it.
As well… Costco never BUYS the land. They use another company to buy it as to not get fleeced by a property developer or what not thinking they can cash in on a big corporate entity.
J.
one more, one more thing….
Buying a large parcel of land also effectively blocks a competitor from moving into that area… (its been done a few times in Vancouver… and I’m sure other areas as well too).
If there are no more BIG chunks of land kicking around…. another Wal-Mart, or Wal-Mart’s division setup to be like Costco, Sam’s Club, can’t get in as well.
J.
Argh…will they get on it already? I don’t blame Costco for wanting to be cozy right next to the No. 1. Crescent Heights? You may as well force them to build it in Vienerville.
I’m all for Costco. Sure, I could be the typical “damn the man!” hippie, but Costco is solid. Nothing beats buying your favorite cereal is mass amounts. Same with toilet paper, too!
Imagine that…The city, being difficult??? No way I don’t beleive it!!! LOL
probably a long dead thread (but I check back from time to time)… I just read your bit again Skeet… clarification on most recent Canadian Costco’s… not 30,000 sq. feet… try 127,000 sq. feet.
you were off by a bit. 
Rumours, and rumours of rumours. What a bunch of crap. Why can’t anyone report the facts? It would take some investigative work to get the information but this blog is mostly just a rumour mill. Unsubstantiated gossip. Who’s got time for that? Not me! This may well be my last entry on this or any blog. All this false information just drives me crazy.
The fact is that Costco made a conditional offer on some land with the City and it fell through because they (Costco) didn’t remove their conditions. CMH doesn’t tell anyone where to build their store or business. Staff point out available options and quote prices on City owned land, which are set by Council (the only role that Council plays in these matters by the way, unless you count zoning which is usually established well in advance of land sales). Costco makes its own decisions. Why does everyone want to blame the City for this when it is Costco’s decision. Where they buy land and what they pay for it, or whether they choose not to open a store here, are all decisions over which the City has no control.
Hi Insider.
I sincerely appreciate your feedback. Yes this site is full of rumours and gossip, and I make no bones about it. BUT, I did call the city, and I emailed Keith Crush to try to get the real story on the Costco situation. I also called Costco. I thought there were 2 sides to the story, and I knew a lot of the rumours about the city were unsubstantiated. Thats what I was trying to do, is to get the real story. I do not apologize for the people who comment with there rumours here, as that what drives this site, and opens up communication.
Either way, although there are people here who disagree with you on some of your opinions (including me) I value your input greatly. Your comments on Costco have definitly cleared things up, and what other media in medicine hat could you explain the city side of things in this manner? its perfect for both of us.
Skeet
Thanks Skeet! I must be having a slow day at work. I’m reading all of this stuff on your blog and a lot of it is driving me crazy; however, if you think I am providing some insight and balance to the discussions then I will continue to read and to contribute; whether you or the others always agree with me. We all know that we’re right, eh?