Costco to Open on South Side

Written by Carolyn Gitomer

Monday, 14 February 2011 05:48

Small businesses and large families of South Tucson will find themselves clocking fewer miles
on trips to Costco this spring when construction on the wholesale business is completed at
South Kino Parkway near Interstate 10.

Construction began at the Tucson Marketplace shopping center in October for a new 14-acre
Costco that is scheduled to open on April 14, according to Jim Sinegal, the store’s CEO.

This will be Costco’s third location in Tucson. The other locations are on East Grant Road near
East Tanque Verde Road and off of North Thornydale Road near West Orange Grove Road.

“We usually have to drive all the way to Costco off of North Thornydale Road, so this location
will definitely be more convenient,” said Abe Frisby, the manager of Las Cazuelitas, a South
Tucson Mexican restaurant. “I think a lot of restaurant owners, markets in the area and families
will benefit from having it in this location.”

Frisby uses Costco mainly for restaurant supplies like oil, napkins and to-go containers because
of its affordability.

Although many rejoice in Costco’s low gas premiums, bulk foods and wholesale prices, the
store creates competition for Food City, a grocery store that has a long history of providing
goods for South Tucson residents.

“There are not concerns with the Costco because it is membership driven and not everyone will
want to pay those fees,” said Richard Salaz, human resources director for the City of South
Tucson. He pointed out that the Tucson Marketplace is not located in South Tucson but is close
enough for people to enjoy the local restaurants. “If anything, it is predicted to bring in more
business overall to this area.”

The new Costco will provide full-time and part-time jobs for 150 to 175 people, Sinegal said.

1/2
Costco to Open on South Side

Written by Carolyn Gitomer

Monday, 14 February 2011 05:48

“Most of the management from our other locations will be promoted and moved to the South
Tucson location,” he said.

Besides creating jobs, Costco also benefits the community through providing donations.

“During the last fiscal year (2009-2010) they donated over 226,000 pounds of produce, canned
goods and bakery goods to the food bank,” said Jack Parris, a representative for the
Community Food Bank. “We hope that the new Costco will be supporter of the Community Food
Bank and are working on that relationship now.”

“As of now the two Costcos located in Tucson are ranked two of the highest in gross sales,”
said Joshua Davis, a Costco employee of eight years at their East Grant Road location. From
2009, “data ranks this specific location the 15th in gross sales worldwide.”

2/2