Huntsville/Madison Development News (Mobile, Hoover: approval, ranked, metro)

[dijkstra]

Originally Posted by RocketDawg

Which is not unthinkable. It would make shopping from Decatur and Athens easier. And if you include Decatur/Morgan in the "trade area" (as it really should be) the population is pushing 700K.

It is absolutely unthinkable. It would be insane for them to move to Madison. At their current location, they are near the center of the county, city and population center for which they service. They are on the Parkway, basically at the corner of University and just down the road from 565. It would be nearly impossible to find a better location. Never say never, because corporations do stupid things all the time but them moving to Madison is very very unlikely to happen.

[cooldiver]

Originally Posted by dijkstra

It is absolutely unthinkable. It would be insane for them to move to Madison. At their current location, they are near the center of the county, city and population center for which they service. They are on the Parkway, basically at the corner of University and just down the road from 565. It would be nearly impossible to find a better location. Never say never, because corporations do stupid things all the time but them moving to Madison is very very unlikely to happen.

I agree with some of you say, but:

If it were such a great location, they wouldn't be struggling to fill the former Toys R Us location. It is a nice central location with good road access, but it is not a great area.

I wish there were a population tool. It would be an interesting exercise to calculate the population of Madison County both East and West of the Parkway. I expect the population center of the county is west of the Parkway, and once you add in Limestone and Morgan counties the population center of the 3 counties is well west of the Parkway.

At the end of the day, it is an under performing Costco.

• It could move in an attempt to make that better
• it could close
• most likely it will stay put.

[Southlander]

Originally Posted by dijkstra

It is absolutely unthinkable. It would be insane for them to move to Madison. At their current location, they are near the center of the county, city and population center for which they service. They are on the Parkway, basically at the corner of University and just down the road from 565. It would be nearly impossible to find a better location. Never say never, because corporations do stupid things all the time but them moving to Madison is very very unlikely to happen.

It is NOT a great location. Maybe in the 1970s-2000, but the area is very depressed. Buildings have been poorly remodeled so many times they just look shabby now. Retailers want to be in up-and-coming areas.
Retailers like Costco think regionally, not locally, so they're going to want to be where people from the entire area and get to them easily. Growth is in Madison, so I can see them going there.

[NoleFanHSV]

Costco moving?

[BEL2HSV]

Originally Posted by Southlander

It is NOT a great location. Maybe in the 1970s-2000, but the area is very depressed. Buildings have been poorly remodeled so many times they just look shabby now. Retailers want to be in up-and-coming areas.
Retailers like Costco think regionally, not locally, so they're going to want to be where people from the entire area and get to them easily. Growth is in Madison, so I can see them going there.

Retailers, specially high volume retailers like Costco are really concerned with traffic counts. No one wants to be in a depressed area, but the area isn't bad enough to warrant moving away from the traffic counts. The West Huntsville/Madison 565 corridor is definitely a high growth area, but it still doesn't compete with traffic counts around the Parkway/565/University area. I would give it another 10 to 15 years and they might be hovering around the same.

[cooldiver]

Originally Posted by BEL2HSV

Retailers, specially high volume retailers like Costco are really concerned with traffic counts. No one wants to be in a depressed area, but the area isn't bad enough to warrant moving away from the traffic counts. The West Huntsville/Madison 565 corridor is definitely a high growth area, but it still doesn't compete with traffic counts around the Parkway/565/University area. I would give it another 10 to 15 years and they might be hovering around the same.

Certainly you are correct, but again the traffic count doesn't help when your store under performs. The HSV location has to be way down at the lower end of the sales rankings at Costco. You just can't appreciate that unless you have been to one of the truly busy Costco locations in other states.

But it remains open, so one must expect that the relatively low cost of doing business here has been its lifeline.

[Dirt Grinder]

Originally Posted by cooldiver

...The HSV location has to be way down at the lower end of the sales rankings at Costco. You just can't appreciate that unless you have been to one of the truly busy Costco locations in other states...

Actually, you have no idea how the revenue generated at the Huntsville Costco compares to the rest of the Costco locations around the country, but you keep beating that same drum. Without meaningful data on which to base your claims, it's just conjecture.

[LCTMadison]

You have to also keep in mind that HSV metro is really on the smaller end of markets that Costco is in. I think we are pretty fortunate to have one. What are some smaller metros with Costcos that you think outperform the HSV location?
Any data for that?

Costco here does pretty well, I would bet that one Costco does more business than both Sam's Club locations combined. I have memberships to both, although I rarely go to Sam's, but when I do its like a ghost town compared to Costco. The weekends and afternoons are pretty busy, which is why I usually try to pop in during the morning after they open. I can't even handle it around the holidays.

Huntsville is also the fastest growing city in AL, something I am sure is not lost on a company like Costco.

[Que Pasa]

Originally Posted by cooldiver

Certainly you are correct, but again the traffic count doesn't help when your store under performs. The HSV location has to be way down at the lower end of the sales rankings at Costco. You just can't appreciate that unless you have been to one of the truly busy Costco locations in other states.

But it remains open, so one must expect that the relatively low cost of doing business here has been its lifeline.

So, with your logic, it is safe to assume every other Costco is beyond maximum occupancy at all given times? I have personally failed to go into Costo here and it not be busy.

[cooldiver]

Originally Posted by Dirt Grinder

Actually, you have no idea how the revenue generated at the Huntsville Costco compares to the rest of the Costco locations around the country, but you keep beating that same drum. Without meaningful data on which to base your claims, it's just conjecture.

I have been to other Costco locations, and I do have eyeballs.

The Huntsville Costco is busy much of the time. Costco locations in other states are crawling with people. Parking lots are packed, and often all of the checkouts will be open with long lines.

The valid point is made that Huntsville is a smaller market. Smallish markets like San Luis Obispo, California, Santa Maria, California, and Juneau, Alaska have extremely busy Costcos. (I have been to all 3 of those and others.)

Obviously Costco is satisfied with Huntsville as the location has been open here quite a while. (I searched, but could not find the opening date.) I expect the prospects for an additional Costco are nil. My opinion is that the chances of this one moving are not high, but are not zero.