My Costco is part of a large shopping center that also has a grocery store, Home Depot, etc. But it sounds like Costco, which used to be shunned by mall owners, is now being seen as an attractive “anchor tenant” — even though technically it wouldn’t be attached to an enclosed mall.
Judy Weil at Seeking Alpha quotes Costco management from the recent earnings conference call:
We think that, our bet is if we’re in six or seven malls right now, and when I say we’re in malls, we’re usually in the parking lot with a breezeway entrance into the mall. In some instances, one example would be in Atlanta Cumberland Mall, they literally, the mall owner tore down I think it was the JC Penny and then we redid the parking lot and we have a gas station and a full Costco with no direct attachment other then a breezeway into the mall.
But no doubt we’re there because we bring destination shoppers of high end to that mall and its been a great location for us in terms of somewhere we weren’t invited to even come to the party. And so I think you’re going to see more of that going forward in many parts.
Once you’re successful, you become a lot more attractive. That’s why ugly rock stars have the babes all over them, right?