Costco plans fourth city warehouse near racetrack: report

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This article was published 15/06/2023 (840 days ago), so information in it may no longer be current.

After years of speculation, a new Costco warehouse is being planned for the western edge of Winnipeg, a city report reveals.

A 166,843-square-foot building is proposed for 4077 Portage Ave., at the intersection of Race Track Road and Stewart Millett Way in the Assiniboia Downs area.

Council’s Assiniboia Community Committee will consider a variance for the project next week.

“The proposed commercial building will contain a Costco Wholesale Corporation retail store,” the report notes.

Mayor Scott Gillingham said the expansion bodes well to attract more development and shoppers to the area.

“Costco, just by its sheer size and volume, the amount of activity that it represents, it certainly would, to me, qualify as an anchor tenant, which would be good for that development and that location,” said Gillingham.

The mayor said the site at the western edge of the city could attract more rural residents to shop in Winnipeg.

“I think this will be great for our local economy,” he said.

Expectations that the city’s fourth Costco location could be built at this address sparked headlines back in 2018, when renderings for a store that closely resembled the popular warehouse bulk retailer were submitted to the city’s board of adjustment. Plans at the time included a large commercial building with more than 800 parking stalls, a gas bar, a tire centre and a propane station. The main, unnamed building appeared to have a Costco-like façade.

Costco did not confirm or deny the new location at the time, and did not respond to requests for comment Thursday. Its online media request form notes: “We cannot comment on locations that will be opening more than three months from today.”

The city’s variance report does not say when the proposed location would open.

Shindico, which is developing the Westport Festival area that the store would be part of, also declined comment.

The proposed Costco should produce several economic benefits for the city by producing new jobs, generating more tax revenues and attracting other developments, the president of the Winnipeg Chamber of Commerce said.

“I think it’s a strong vote of confidence in our retail sector here in the city… having an additional (Costco) adds even more capacity,” Loren Remillard said, adding Winnipeg businesses and consumers could also benefit from the added competition in the market.

“Inevitably, when you have these large developments, there’s always that small businesses versus large businesses (debate.) I think we need to recognize that both are needed and both have their place and can exist and compete and be successful in Winnipeg,” he said.

A local economics professor said the news may generally bode well for the retail sector, but economic spinoffs may not benefit all competitors.

“I think, in some ways, it’s maybe another indication that there is some bounce-back in the retail sector…. (But) big-box stores … (redirect) spending away from other stores as well… so the gains for Costco, to some extent, will probably come at the expense of some other businesses,” said Fletcher Baragar, an associate professor of economics at the University of Manitoba.

Baragar said high inflation rates and slower wage growth could make Costco especially attractive to Winnipeg shoppers right now. However, he suspects the company predicted demand would justify the new store before those conditions set in, since chatter about this exact location began years ago.

“Probably what’s driving it is just general marketing principles and to sort of consolidate their position in the Winnipeg market,” he said. “Economic conditions haven’t made it any less attractive.”

Chuck Davidson, president of the Manitoba Chambers of Commerce, said the Costco plans are a positive indicator for the local economy.

“Overall, this is a good sign for retail in Manitoba and for consumers as well,” he said. “Retail is only going to go into areas where they know that there’s a potential market.”

Coun. Janice Lukes, who leads council’s public works committee, said of the three existing Costco warehouses in the city, the St. James Street and McGillivray Boulevard locations are facing “capacity issues” already, indicating there is demand for an additional store.

The public works committee recently directed city staff to determine if a traffic signal is warranted near the north entrance of the 1315 St. James St. Costco location because of the high amount of traffic surrounding that store.

Lukes said the new retail location would also benefit from dense housing under construction in the surrounding area.

“There’s been much density that’s gone in there (and is) going in there…. (And Costco) is definitely an anchor tenant. It will absolutely trigger more development,” said Lukes.

The city report notes municipal planners support varying standard rules for the area to make way for the proposed retail development. The changes would reduce the number of required bicycle stalls from 64 to 32 (though the company wants just 24 stalls), rely on four loading spaces instead of five and allow part of the building’s west side yard to be one metre wide instead of the standard 3.05 metres.

The Assiniboia Community Committee is scheduled to vote on the variance application Wednesday.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga