Quote:
Originally Posted by swimmer_spe
I heard a rumour.
I heard that the Costco in Sudbury is either moving, or a new one is coming. It is supposed to be built in the South End where the Walmart is so they will be able to put in gas pumps. Anyone know if this is true?
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I have no factual information, but it seems doubtful based on initial analysis.
Why?
1. A new Costco building costs tens of millions of dollars to construct. The marginal value add of a gas station (especially one that sells low-margin gasoline) would likely not provide enough profit margin to justify a completely new store.
2. A second Costco in a catchment area of ~250,000 people (that's pretty generous FYI) would thin the market hugely. Look at Ottawa-Gatineau as an example - 5 Costcos for a catchment area of close to 1.5 - 2 million people. That indicates to me that there's nowhere near the population required to support a second Costco in the Sudbury region.
Then again there are some in Sudbury who are convinced that IKEA is coming, as if IKEA (which targets stores in metropolitan areas of >750,000) would just plunk millions of dollars into a store 'just because'.