No. 8: City hopes Costco appeal lures other national chains

Costco Wholesale Corp.’s (Nasdaq: COST) entry in Springfield can be summed up by Mayor Ken McClure’s proclamation: “The rumors are true.”

With those words in May 2020, McClure kicked off a 15-month effort to develop a 160,000-square-foot store, with nearly $5 million in public infrastructure incentives, in northeast Springfield.

Opening day arrived Aug. 18, and the Issaquah, Washington-based retailer was greeted by a line of shoppers extending around the building.

“We’ve been wanting you here for 20 years!” was heard by Springfield Business Journal reporter Karen Craigo as she covered the early morning event.

Located near the intersection of Chestnut Expressway and U.S. Highway 65, the store is Costco’s seventh in Missouri. But more importantly, it’s the first in the Ozarks, a region home to the headquarters of Bentonville, Arkansas-based Walmart and Costco’s wholesale competitor, Sam’s Club.

City officials expect the store to stem consumer spending “leakage” to other markets. Additionally, they’re pinning hopes on the retailer’s presence spurring additional development in the area and attracting more national stores.

The Springfield store is on 18 acres and has 700 parking spaces, as well as a fuel station. For the infrastructure improvements, including relocating Eastgate Avenue and traffic signal stormwater modifications, the city will reimburse Costco over 15 years with a portion of sales taxes generated by the store.

Costco is ranked No. 12 on the 2021 Fortune 500, with $195.9 billion in revenue and profits of $4 billion, as of Aug. 31.