Winnipeg’s new west-side Costco draws early crowd

WINNIPEG — Cam Ogilvie wasn’t the only person on site when he pulled up to Winnipeg’s biggest and newest Costco at 2:30 a.m. on Thursday.

“This young lady right over here — 5:30 last night,” Ogilvie said, pointing to a woman in a crowd of people waiting to enter the big-box retailer’s warehouse. (She corrected him: “Five.”)

Upwards of 80 people grouped together before 6:30 a.m., awaiting Costco’s grand opening at 4077 Portage Ave.

The west Winnipeg site covers 15.4 acres, including more than 1,000 parking stalls and a gas bar with 24 pumps. It’s home to Manitoba’s first Costco sushi bar and has a hearing aid department.

“We’ve outgrown the St. James location,” said Anthony Taza, Costco’s director of membership, credit card and services for Canada.

The warehouse itself is some 166,894 square feet. The location near Headingley on the west edge of the capital is a good location because of the traffic found on Portage Avenue, Taza said.

The site is part of a growing Westport mixed-use development.

Meanwhile, the Costco location at 1315 St. James St. has temporarily closed. It’ll be renovated into a business centre — which is focused on selling bulk items to businesses — with a target opening date of April.

Costco staff will deliver goods to businesses from the St. James location. Members of all stripes will also be able to enter, though the offerings will be different, Taza said — for example, commercial appliances will be sold on site.

Costco plans to double its number of business centres across Canada over the next year. It currently has six; by the end of 2026, there may be 11, Taza said.

Vancouver, Ontario and Quebec are set for new centres over the next month. Members have been “really asking for it,” Taza said.

“Every opportunity to convert a store, where we’re closing one and opening a new one, we keep the smaller one through the business centre,” he continued.

Staff from St. James have moved to Portage Avenue. There are roughly 450 staff on site. Another 125 jobs were created through employees changing locations and backfilling, Taza said.

A further 300 to 400 people will be needed when the St. James business centre opens, Taza said.

Costco also has local warehouses on McGillivray Boulevard and Regent Avenue West. It plans to open a 162,000-sq.-ft. hub in West St. Paul in the coming years.

“We’re really looking to fast-track that location,” Taza said, citing a big response from Manitobans about the Portage Avenue site.

The new location marks Costco’s fourth with a sushi bar in Canada. The corporation has about 40 stores in Japan; Japanese staff flew to Canada to teach employees proper sushi cutting techniques, Taza said.

Costco counts 112 Canadian locations. The Portage Avenue locale has a hearing aid centre, optical station, pharmacy and eatery with its staple $1.50 hotdog-and-drink combo.

Most of the company’s revenue comes from membership, Taza noted. Globally, Costco accumulated US$4.8 billion through membership fees last year. It logged US$249.6 billion in net sales and a net income of US$7.4 billion (five and 17 per cent year-over-year increases, respectively).

Costco typically marks up its items 10 to 14 per cent, which is lower than most in the industry, Taza said.

Executives from Costco Canada headquarters visited the Portage Avenue site on Thursday for opening celebrations. They cut a bright red ribbon — similarly coloured to the open sign decorating Costco — alongside Manitoba Premier Wab Kinew and Winnipeg Mayor Scott Gillingham.

“I think the new Costco location is exciting because everyone’s thinking of the cost of living,” Kinew said after the ceremony.

The province opened a pop-up Liquor Mart in a renovated construction trailer near Costco to draw sales during the holiday season. It’s the first of its kind and was made specifically to open on the new Costco’s first day of business.

Nearby Assiniboia Downs expects to see more traffic because of Costco. Already, new residential buildings have boosted the horse racing site’s customer base, said chief executive Darren Dunn.

“We’re very excited. It’s been a long time coming,” Dunn said of Costco. “The sheer size of the facility and the extremely large parking area — it’s going to facilitate, I think, just an incredible experience.”

The city will finish a tax assessment of 4077 Portage Ave. in the coming months, spokesman Kalen Qually said in a statement.

» Winnipeg Free Press